Dave & Buster’s Entertainment (PLAY)
Cash conversion cycle
| Jan 31, 2025 | Feb 4, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 29, 2023 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 46.21 | 40.29 | 9.17 | 53.68 | 53.65 |
| Days of sales outstanding (DSO) | days | — | 4.04 | — | — | 4.97 |
| Number of days of payables | days | — | 128.45 | — | — | 100.08 |
| Cash conversion cycle | days | 46.21 | -84.12 | 9.17 | 53.68 | -41.47 |
January 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 46.21 + — – —
= 46.21
The cash conversion cycle of Dave & Buster’s Entertainment has shown fluctuations over the past few years. The cycle was negative, implying efficient management of cash flows, on January 29, 2023, and February 4, 2024. This indicates that the company's ability to convert its inventory into cash quickly and efficiently exceeded its payables and receivables collection periods during these periods.
However, on January 31, 2023, and January 31, 2025, the cycle increased to positive figures, indicating a slower conversion of inventory into cash compared to the time it takes to pay off its payables. This may suggest a potential strain on liquidity and working capital during those periods.
The most recent data for January 31, 2024, shows a relatively lower cycle of 9.17 days, which implies the company improved its efficiency in managing its cash conversion cycle by reducing the time taken to convert inventory into cash.
Overall, Dave & Buster’s Entertainment should aim to maintain a negative or low cash conversion cycle to optimize its working capital and liquidity management in the long run.
Peer comparison
Jan 31, 2025