Dave & Buster’s Entertainment (PLAY)

Quick ratio

		Feb 4, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020
Cash	US$ in thousands	37,300	181,600	25,910	11,891	24,655
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	22,900	25,526	64,921	70,064	2,331
Total current liabilities	US$ in thousands	435,600	438,000	311,515	271,636	290,865
Quick ratio		0.14	0.47	0.29	0.30	0.09

February 4, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($37,300K + $—K + $22,900K) ÷ $435,600K
= 0.14

The quick ratio of Dave & Buster’s Entertainment has shown fluctuations over the past five years.

In 2024, the quick ratio is 0.14, indicating that the company may face challenges in meeting its short-term obligations with its most liquid assets. This is a sharp decline from the previous year's ratio of 0.47, suggesting a significant decrease in liquidity.

In 2023, the quick ratio improved to 0.47, signifying the company had a better ability to cover its short-term liabilities with its quick assets. However, this improvement was not sustained in the following year.

In 2022, the quick ratio was 0.29, slightly lower than the ratio in 2021, which stood at 0.30. These ratios suggest that Dave & Buster’s faced liquidity challenges during these years, possibly due to a high level of current liabilities relative to quick assets.

The quick ratio was notably low in 2020 at 0.09, which indicates the company had minimal liquid assets available to cover its short-term obligations. This could suggest a potential risk in meeting immediate financial demands.

Overall, the fluctuating trend in the quick ratio of Dave & Buster’s Entertainment over the past five years implies varying levels of liquidity management and suggests the need for closer monitoring of the company's ability to meet its short-term financial obligations.