Dave & Buster’s Entertainment (PLAY)
Profitability ratios
Return on sales
| Feb 4, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 83.69% | 83.53% | 83.51% | 82.84% | 82.78% |
| Operating profit margin | 14.84% | 14.00% | 15.06% | -57.87% | 10.93% |
| Pretax margin | 7.89% | 9.26% | 10.27% | -66.53% | 9.39% |
| Net profit margin | 6.14% | 7.31% | 8.74% | -47.42% | 7.40% |
Based on the provided data, Dave & Buster’s Entertainment has shown consistent performance in terms of gross profit margins over the past five years, with levels ranging from 82.78% to 83.69%. This indicates the company's ability to effectively manage its cost of goods sold.
In terms of operating profit margins, Dave & Buster’s has shown variability in performance, with a noticeable decline in 2021, where the operating profit margin was negative at -57.87%. However, the company has gradually improved this ratio in the following years, reaching 14.84% in 2024.
The pretax margin for Dave & Buster’s has also exhibited fluctuation over the years, with significant negative performance in 2021 at -66.53%. However, the company has made progress in improving this ratio, reaching 7.89% in 2024.
Similarly, the net profit margin of Dave & Buster’s has shown variability, with the lowest being -47.42% in 2021. Nonetheless, the company has demonstrated resilience by recovering and achieving a net profit margin of 6.14% in 2024.
Overall, Dave & Buster’s Entertainment has shown effectiveness in managing its gross profit margin consistently, with improvements in operating, pretax, and net profit margins over the years, indicating a positive trend in profitability.
Return on investment
| Feb 4, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.17% | 6.98% | 7.98% | -10.74% | 6.25% |
| Return on assets (ROA) | 3.38% | 3.65% | 4.63% | -8.80% | 4.23% |
| Return on total capital | 19.97% | 16.07% | 26.48% | -33.82% | 18.46% |
| Return on equity (ROE) | 50.52% | 33.41% | 39.43% | -135.07% | 59.10% |
Dave & Buster’s Entertainment has shown a consistent improvement in profitability over the last five years based on the profitability ratios analyzed. The Operating ROA has increased from 6.25% in 2020 to 8.17% in 2024, indicating the company’s ability to generate earnings from its assets through its core operations. The ROA has also shown an upward trend, reaching 3.38% in 2024 compared to -8.80% in 2021, indicating improved efficiency in asset utilization to generate profits.
Moreover, the Return on Total Capital has shown a significant improvement, increasing from -33.82% in 2021 to 19.97% in 2024, reflecting the company's ability to generate returns for both debt and equity holders. The ROE has shown a remarkable improvement as well, with a significant increase from -135.07% in 2021 to 50.52% in 2024, indicating a strong ability to generate profits for shareholders.
Overall, Dave & Buster’s Entertainment has demonstrated a positive trend in profitability ratios, showcasing improved asset utilization, operational efficiency, and returns for both debt and equity investors.