Dave & Buster’s Entertainment (PLAY)
Profitability ratios
Return on sales
| Jan 31, 2025 | Feb 4, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 29, 2023 | |
|---|---|---|---|---|---|
| Gross profit margin | 85.26% | 83.69% | 32.83% | 84.28% | 83.53% |
| Operating profit margin | 10.33% | 14.84% | 13.90% | 13.36% | 14.00% |
| Pretax margin | 3.28% | 7.89% | 7.40% | 8.84% | 9.26% |
| Net profit margin | 2.73% | 6.14% | 5.75% | 6.98% | 7.31% |
Based on the provided data, Dave & Buster’s Entertainment has shown varying levels of profitability over the years based on different profitability ratios.
1. Gross Profit Margin:
- The company's gross profit margin has fluctuated, reaching as high as 85.26% in January 31, 2025, indicating the company's ability to generate profit after accounting for the cost of goods sold.
2. Operating Profit Margin:
- Dave & Buster’s operating profit margin has ranged from 10.33% in January 31, 2025 to 14.84% in February 4, 2024, reflecting the company's efficiency in managing operating expenses relative to revenue.
3. Pretax Margin:
- The pretax margin of Dave & Buster’s has shown a declining trend over the years, with the lowest margin recorded at 3.28% on January 31, 2025. This ratio highlights the company's ability to generate profit before taxes.
4. Net Profit Margin:
- The net profit margin of Dave & Buster’s has also shown a decline over the years, indicating that the company is generating lower levels of profit relative to its revenue. The net profit margin reached its lowest point of 2.73% on January 31, 2025.
In summary, Dave & Buster’s Entertainment has experienced fluctuations in its profitability, with a declining trend in net profit margin and pretax margin, despite relatively high levels of gross profit margin. Further analysis and evaluation of the company's cost management and revenue generation strategies may be necessary to improve overall profitability.
Return on investment
| Jan 31, 2025 | Feb 4, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 29, 2023 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.49% | 8.17% | 8.17% | 6.98% | 6.98% |
| Return on assets (ROA) | 1.45% | 3.38% | 3.38% | 3.65% | 3.65% |
| Return on total capital | 140.74% | 19.97% | 117.52% | 62.74% | 16.07% |
| Return on equity (ROE) | 39.99% | 50.52% | 50.52% | 33.40% | 33.41% |
Based on the provided data, we can analyze Dave & Buster’s Entertainment's profitability ratios as follows:
1. Operating Return on Assets (Operating ROA):
- The Operating ROA for Dave & Buster’s has shown a consistent trend, starting at 6.98% in January 2023 and increasing to 8.17% by February 2024. However, there was a slight decrease to 5.49% by January 31, 2025. This ratio measures the efficiency of the company in generating operating profit from its assets.
2. Return on Assets (ROA):
- The ROA for Dave & Buster’s has also followed a consistent pattern, starting at 3.65% in January 2023, decreasing to 1.45% by January 31, 2025. This ratio indicates the company's ability to generate profit from its total assets.
3. Return on Total Capital:
- The Return on Total Capital has fluctuated significantly for Dave & Buster’s, with notable spikes in January 31, 2023, and January 31, 2024. This ratio measures the overall return generated on all capital employed in the business.
4. Return on Equity (ROE):
- The Return on Equity shows a similar trend to ROA, starting at 33.41% in January 29, 2023, and decreasing to 39.99% by January 31, 2025. This ratio reflects the profitability of the company from the perspective of its equity shareholders.
Overall, analyzing these profitability ratios provides insight into the efficiency and effectiveness of Dave & Buster’s in utilizing its assets, generating profits, and providing returns to its investors. The trends observed in these ratios can help stakeholders evaluate the financial performance and sustainability of the company over time.