Dave & Buster’s Entertainment (PLAY)

Receivables turnover

		Feb 4, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020
Revenue	US$ in thousands	2,066,500	1,875,440	1,243,140	436,512	1,354,690
Receivables	US$ in thousands	22,900	25,526	64,921	70,064	2,331
Receivables turnover		90.24	73.47	19.15	6.23	581.16

February 4, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $2,066,500K ÷ $22,900K
= 90.24

The receivables turnover ratio for Dave & Buster’s Entertainment has shown significant fluctuations over the past five years. In the most recent fiscal year, ending on February 4, 2024, the company achieved a receivables turnover ratio of 90.24, indicating that, on average, the company collected its accounts receivables approximately 90 times during the year. This represents a notable improvement compared to the previous fiscal year when the ratio stood at 73.47.

The sharp increase in the receivables turnover ratio from 6.23 in January 31, 2021 to 90.24 in February 4, 2024, suggests a more efficient management of accounts receivables during this period. This improvement could signal better credit policies, more timely collections, or a shift in customer payment behavior.

However, the unusually high receivables turnover ratio of 581.16 in February 2, 2020 indicates that the company collected its receivables far more frequently during that fiscal year. This could be due to various factors such as changes in sales volumes, payment terms, or customer behavior.

Overall, the trend in Dave & Buster’s receivables turnover ratio reflects fluctuations in the company's ability to efficiently convert its accounts receivables into cash. An increasing ratio generally indicates better liquidity and efficient management of credit while a decreasing ratio may raise concerns about the company's collection practices and potential collection issues.