Dave & Buster’s Entertainment (PLAY)

Current 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
Total current assets	US$ in thousands	137,500	157,000	208,000	207,600	293,700	233,605	214,506	217,140	145,571	146,384	195,955	111,443	118,871	92,392	292,984	229,792	78,977	71,609	78,215	72,973
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
Current ratio		0.32	0.37	0.49	0.51	0.67	0.58	0.53	0.69	0.47	0.50	0.63	0.40	0.44	0.32	0.93	0.73	0.27	0.25	0.30	0.28

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 fluctuated over the past few quarters, indicating variations in the company's liquidity position. As of Feb 4, 2024, the current ratio stands at 0.32, which implies that the company may have difficulties in meeting its short-term obligations with its current assets alone.

Looking back at previous periods, we observe a decreasing trend in the current ratio from Jul 31, 2022, to Jan 30, 2022, which could signal potential liquidity challenges during that period. However, the company managed to improve its current ratio significantly by Aug 2, 2020, reaching a ratio of 0.93, reflecting a strong ability to cover short-term obligations.

It is crucial for investors and stakeholders to closely monitor Dave & Buster’s liquidity position, specifically its current ratio, to assess the company's ability to manage its short-term financial obligations effectively. Fluctuations in the current ratio could indicate changes in the company's financial health and operational efficiency.