Dave & Buster’s Entertainment (PLAY)

Quick 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
Cash	US$ in thousands	37,300	64,000	82,600	91,500	181,600	108,211	100,386	139,081	25,910	27,005	107,801	20,154	11,891	8,341	224,305	156,833	24,655	20,880	23,318	20,353
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	22,900	6,100	33,200	20,700	25,526	45,852	34,682	—	64,921	67,646	—	—	70,064	—	—	—	—	—	—	—
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
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

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 varied over the past 20 reported periods, ranging from a low of 0.03 to a high of 0.71. The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of less than 1 indicates that the company may have difficulty meeting its short-term liabilities.

From the data provided, it is evident that the quick ratio has fluctuated significantly, indicating potential fluctuations in the company's liquidity position over time. The quick ratio was below 1 for a majority of the reported periods, suggesting a potential risk in the company's ability to cover its short-term debts with its quick assets.

Overall, the trend in the quick ratio for Dave & Buster’s Entertainment appears to be inconsistent, demonstrating the importance of monitoring liquidity levels to ensure the company can meet its short-term financial obligations efficiently.