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.