Dave & Buster’s Entertainment (PLAY)

Liquidity ratios

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
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
Quick ratio 0.14 0.17 0.27 0.27 0.47 0.38 0.33 0.44 0.29 0.33 0.35 0.07 0.30 0.03 0.71 0.50 0.08 0.07 0.09 0.08
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

Dave & Buster’s Entertainment has shown a fluctuating trend in its liquidity ratios over the past few quarters. The current ratio, which measures the company's ability to cover its short-term liabilities with its short-term assets, has ranged from a low of 0.27 to a high of 0.93. This indicates that the company may have difficulty meeting its short-term obligations, as the ratio often falls below 1.0.

The quick ratio, a more stringent measure of liquidity that excludes inventories from current assets, also reflects a similar pattern of fluctuation, ranging from 0.03 to 0.71. This implies that Dave & Buster’s may struggle to meet its immediate financial obligations without relying on inventory, which may not be easily convertible into cash.

The cash ratio, which is the most conservative liquidity measure as it only includes cash and cash equivalents in the numerator, has varied significantly between 0.03 and 0.71. This suggests that the company may have had limited cash reserves to cover its short-term liabilities in certain periods.

Overall, the liquidity ratios of Dave & Buster’s Entertainment indicate a potential liquidity risk, as the company may face challenges in meeting its short-term financial obligations. Management may need to closely monitor and improve the company's cash management practices to enhance liquidity and financial stability.

Additional liquidity measure

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 conversion cycle days -84.12 -27.67 -22.13 -14.08 -41.48 -5.51 -21.19 -20.06 -20.43 19.47 -28.03 -69.99 -2.78 -51.40 -69.58 -81.09 -48.31 -51.71 -42.24 -31.25

The cash conversion cycle of Dave & Buster’s Entertainment has shown fluctuations over the past several reporting periods. The company's cash conversion cycle, which reflects the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales, has varied from -84.12 days to 19.47 days over the last several quarters.

In general, a negative cash conversion cycle indicates that the company is able to generate cash from its sales before paying its suppliers, providing a beneficial working capital position. The company achieved its most efficient performance in this metric during the May 1, 2022, reporting period with a cash conversion cycle of -21.19 days, indicating a relatively rapid turnaround of inventory and efficient collection of receivables compared to the payment of payables.

Conversely, the least efficient performance was observed on May 5, 2019, with a cash conversion cycle of -31.25 days, although the company has generally shown adept management of its working capital over the reviewed periods.

Overall, analyzing the cash conversion cycle can provide insights into the company's operational efficiency, liquidity position, and ability to manage its working capital effectively.