Dave & Buster’s Entertainment (PLAY)

Current ratio

		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
Total current assets	US$ in thousands	94,400	112,000	96,100	137,800	137,500	137,500	157,000	157,000	208,000	208,000	207,600	293,700	293,700	233,605	233,605	214,506	217,140	217,140	145,571	145,571
Total current liabilities	US$ in thousands	433,900	391,000	408,200	424,100	435,600	435,600	419,300	419,300	422,500	422,500	409,500	438,000	438,000	406,242	406,242	407,585	313,078	313,078	311,515	311,515
Current ratio		0.22	0.29	0.24	0.32	0.32	0.32	0.37	0.37	0.49	0.49	0.51	0.67	0.67	0.58	0.58	0.53	0.69	0.69	0.47	0.47

January 31, 2025 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $94,400K ÷ $433,900K
= 0.22

The current ratio of Dave & Buster’s Entertainment has been fluctuating over the past few years, ranging from a low of 0.22 to a high of 0.69. This ratio indicates the company's ability to meet its short-term obligations with its current assets. A current ratio below 1 suggests that the company may have difficulty meeting its short-term liabilities with its current assets alone.

With a current ratio below 1 in most of the periods provided, it appears that Dave & Buster’s Entertainment may have some liquidity concerns. The declining trend in the current ratio over time raises potential concerns about the company's ability to cover its short-term obligations.

It is important for investors and analysts to monitor the company's liquidity position closely to ensure its financial health and ability to manage its short-term liabilities effectively. Further analysis of the company's cash flow and working capital management may provide additional insights into Dave & Buster’s Entertainment's liquidity challenges.