Dave & Buster’s Entertainment (PLAY)

Current ratio

		Feb 4, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020
Total current assets	US$ in thousands	137,500	293,700	145,571	118,871	78,977
Total current liabilities	US$ in thousands	435,600	438,000	311,515	271,636	290,865
Current ratio		0.32	0.67	0.47	0.44	0.27

February 4, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $137,500K ÷ $435,600K
= 0.32

The current ratio of Dave & Buster’s Entertainment has shown fluctuations over the past five years. As of Feb 4, 2024, the current ratio stands at 0.32, indicating that the company's current assets are significantly lower than its current liabilities. This suggests potential liquidity concerns or an imbalance in the company's short-term financial obligations.

Compared to the previous year, where the current ratio was 0.67 on Jan 29, 2023, there has been a notable decrease in liquidity. However, the current ratio has been consistently below 1 over the past five years, raising concerns about the company's ability to meet its short-term liabilities using its current assets alone.

It is crucial for Dave & Buster’s Entertainment to improve its current ratio to ensure financial stability and meet its obligations in the short term. Management may need to evaluate its current asset levels, working capital management, and overall liquidity position to address these concerns and improve the company's financial health.