Dave & Buster’s Entertainment (PLAY)
Cash conversion cycle
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 4, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Apr 30, 2022 | Jan 31, 2022 | Jan 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 28.00 | 26.37 | 14.49 | 14.87 | 19.15 | 19.33 | 50.53 | 47.85 | 46.29 | 45.83 | 51.32 | 50.74 | 52.60 | 55.65 | 30.59 | 32.92 | 30.36 | 31.45 | 66.87 | 66.02 |
| Days of sales outstanding (DSO) | days | — | — | — | — | 4.04 | — | — | 1.07 | — | 5.53 | — | — | 4.81 | — | 9.24 | — | — | — | — | 17.12 |
| Number of days of payables | days | — | — | — | — | 61.05 | — | — | 76.91 | — | 73.00 | — | — | 98.13 | — | 38.52 | — | 39.79 | — | — | 102.33 |
| Cash conversion cycle | days | 28.00 | 26.37 | 14.49 | 14.87 | -37.86 | 19.33 | 50.53 | -27.99 | 46.29 | -21.64 | 51.32 | 50.74 | -40.72 | 55.65 | 1.30 | 32.92 | -9.43 | 31.45 | 66.87 | -19.19 |
January 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 28.00 + — – —
= 28.00
The cash conversion cycle for Dave & Buster’s Entertainment fluctuated over the period analyzed. The cycle represents the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
- In January 2022, the company had a negative cash conversion cycle of -19.19 days, indicating that it was able to generate cash before having to pay for its inventory and other expenses.
- By January 2023, the cycle increased to 50.74 days, suggesting a longer time to convert investments into cash.
- In July 2023, the cycle decreased significantly to -21.64 days, showing an improvement in efficiency in managing working capital.
- The cycle continued to fluctuate over the following periods, indicating variability in the company's ability to efficiently manage its cash conversion process.
Overall, a lower cash conversion cycle is typically favorable as it signifies that the company can quickly convert its investments into cash, improving its liquidity position. Fluctuations in the cycle may be influenced by changes in sales patterns, inventory management, or payment terms with suppliers and customers. Monitoring and managing the cash conversion cycle is crucial for assessing and improving the company's working capital management efficiency.
Peer comparison
Jan 31, 2025