Dave & Buster’s Entertainment (PLAY)
Activity ratios
Short-term
Turnover ratios
| Feb 4, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Nov 1, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | Nov 3, 2019 | Aug 4, 2019 | May 5, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 9.06 | 7.71 | 7.72 | 6.87 | 6.80 | 6.09 | 5.39 | 5.65 | 5.08 | 4.57 | 5.70 | 3.80 | 3.15 | 4.28 | 4.77 | 5.75 | 6.77 | 7.12 | 8.35 | 7.59 |
| Receivables turnover | 90.21 | 333.71 | 61.76 | 96.80 | 73.55 | 36.39 | 43.83 | — | 19.16 | 15.31 | — | — | 6.23 | — | — | — | — | — | — | — |
| Payables turnover | 2.84 | 4.80 | 4.84 | 5.14 | 3.65 | 4.84 | 3.75 | 4.31 | 3.28 | 4.33 | 3.96 | 2.20 | 2.06 | 2.67 | 2.50 | 2.52 | 3.57 | 3.55 | 4.25 | 4.60 |
| Working capital turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
The inventory turnover ratio for Dave & Buster’s Entertainment has shown a fluctuating trend over the periods reviewed. The company's ability to manage its inventory efficiently has improved over time, with the ratio increasing from 3.15 in January 2021 to 9.06 in February 2024. This indicates that the company is selling its inventory more frequently, which is generally a positive sign for operational efficiency.
The receivables turnover ratio has also varied significantly, ranging from 6.23 to 333.71 over the periods analyzed. This ratio measures how effectively the company is collecting on its credit sales. A higher ratio suggests that the company is collecting its receivables more quickly. The sharp fluctuations in this ratio may be indicative of changes in the company's credit policies or the payment behavior of its customers.
On the other hand, the payables turnover ratio has remained relatively stable, ranging from 2.06 to 5.14. This ratio highlights how quickly the company is paying its suppliers. A higher turnover ratio indicates that the company is managing its payables efficiently. The consistent performance in this ratio suggests that Dave & Buster’s has been effectively managing its payment obligations to suppliers.
Unfortunately, there is no data provided for the working capital turnover ratio, so we cannot evaluate the company's efficiency in generating revenue in relation to its working capital over the periods reviewed. It would be helpful to have this data to gain a more comprehensive understanding of Dave & Buster’s operational efficiency and financial performance.
Average number of days
| Feb 4, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Nov 1, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | Nov 3, 2019 | Aug 4, 2019 | May 5, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 40.29 | 47.35 | 47.31 | 53.11 | 53.65 | 59.94 | 67.75 | 64.56 | 71.80 | 79.83 | 64.08 | 96.14 | 116.01 | 85.26 | 76.55 | 63.48 | 53.94 | 51.24 | 43.70 | 48.06 |
| Days of sales outstanding (DSO) | days | 4.05 | 1.09 | 5.91 | 3.77 | 4.96 | 10.03 | 8.33 | — | 19.05 | 23.84 | — | — | 58.59 | — | — | — | — | — | — | — |
| Number of days of payables | days | 128.45 | 76.11 | 75.35 | 70.97 | 100.09 | 75.48 | 97.27 | 84.62 | 111.28 | 84.20 | 92.11 | 166.13 | 177.37 | 136.66 | 146.13 | 144.57 | 102.25 | 102.95 | 85.94 | 79.32 |
Days of inventory on hand (DOH) for Dave & Buster’s Entertainment have shown a decreasing trend over the past few quarters, indicating that the company has been able to manage its inventory more efficiently. This suggests improved inventory turnover and potentially lower holding costs.
Days of sales outstanding (DSO) have fluctuated over the periods provided, with some quarters showing very low DSO, indicating efficient collection of accounts receivable, while others have shown higher DSO, implying slower collection. Dave & Buster’s should focus on maintaining a lower DSO to improve cash flow and reduce the risk of bad debts.
The number of days of payables for the company has varied significantly, with periods of higher and lower days of payables. A higher number of days of payables may indicate that Dave & Buster’s is taking longer to pay its creditors, which could strain relationships or have potential consequences for credit terms.
Overall, analyzing these activity ratios together can provide insight into Dave & Buster’s working capital management and operational efficiency. It is crucial for the company to strike a balance between inventory management, accounts receivable collection, and payables to optimize its cash flow and financial health.
Long-term
| Feb 4, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Nov 1, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | Nov 3, 2019 | Aug 4, 2019 | May 5, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 1.55 | 1.64 | 1.68 | 1.69 | 1.59 | 1.44 | 1.32 | 1.82 | 1.60 | 1.33 | 1.07 | 0.67 | 0.54 | 0.79 | 0.98 | 1.27 | 1.50 | 1.53 | 1.55 | 1.55 |
| Total asset turnover | 0.55 | 0.55 | 0.55 | 0.54 | 0.50 | 0.45 | 0.42 | 0.59 | 0.53 | 0.44 | 0.35 | 0.23 | 0.19 | 0.28 | 0.33 | 0.45 | 0.57 | 0.58 | 0.59 | 0.60 |
Dave & Buster’s Entertainment's fixed asset turnover ratio has been fluctuating over the past 20 reporting periods, ranging from a low of 0.54 to a high of 1.82. This ratio measures how efficiently the company is utilizing its fixed assets to generate sales revenue. Generally, a higher fixed asset turnover ratio indicates better efficiency in using fixed assets to generate revenue.
On the other hand, the total asset turnover ratio has also seen variations, with a range from 0.19 to 0.60 over the same period. This ratio measures the efficiency of the company in generating sales revenue from all its assets, both fixed and current. A higher total asset turnover ratio suggests that the company is more efficient in using its total assets to generate sales.
Overall, based on the trend analysis of both fixed asset turnover and total asset turnover ratios, Dave & Buster’s Entertainment has shown fluctuations in efficiency in utilizing its assets to generate revenue over the past 20 reporting periods. It is important to further investigate the underlying factors contributing to these fluctuations to assess the company's overall operational efficiency and asset utilization.