Dave & Buster’s Entertainment (PLAY)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 37,300 | 64,000 | 82,600 | 91,500 | 181,600 | 108,211 | 100,386 | 139,081 | 25,910 | 27,005 | 107,801 | 20,154 | 11,891 | 8,341 | 224,305 | 156,833 | 24,655 | 20,880 | 23,318 | 20,353 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 435,600 | 419,300 | 422,500 | 409,500 | 438,000 | 406,242 | 407,585 | 313,078 | 311,515 | 290,678 | 308,933 | 279,220 | 271,636 | 287,427 | 313,814 | 316,695 | 290,865 | 281,383 | 256,641 | 259,070 |
| Cash ratio | 0.09 | 0.15 | 0.20 | 0.22 | 0.41 | 0.27 | 0.25 | 0.44 | 0.08 | 0.09 | 0.35 | 0.07 | 0.04 | 0.03 | 0.71 | 0.50 | 0.08 | 0.07 | 0.09 | 0.08 |
February 4, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($37,300K
+ $—K)
÷ $435,600K
= 0.09
The cash ratio of Dave & Buster’s Entertainment has fluctuated over the past several quarters, ranging from as low as 0.03 to as high as 0.71. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a greater ability to cover short-term obligations.
Looking at the trend, the cash ratio was relatively low in the initial quarters of 2021 but showed significant improvement in the later part of 2021 and early 2022, reaching a peak of 0.71 in August 2020. However, it then dropped to 0.03 in January 2021 before gradually recovering.
The cash ratio of 0.09 as of February 4, 2024, suggests that the company has $0.09 of cash and cash equivalents for every $1 of its current liabilities. This indicates that Dave & Buster’s Entertainment may have a relatively lower level of liquidity to meet its short-term obligations compared to previous quarters.
Overall, it is important for the company to closely monitor its cash position and manage its liquidity effectively to ensure it can meet its short-term financial obligations in a timely manner.
Peer comparison
Feb 4, 2024