Dave & Buster’s Entertainment (PLAY)

Net profit margin

		Jan 31, 2025	Feb 4, 2024	Jan 31, 2024	Jan 31, 2023	Jan 29, 2023
Net income	US$ in thousands	58,300	126,900	126,900	137,100	137,135
Revenue	US$ in thousands	2,132,700	2,066,500	2,205,300	1,964,430	1,875,440
Net profit margin		2.73%	6.14%	5.75%	6.98%	7.31%

January 31, 2025 calculation

Net profit margin = Net income ÷ Revenue
= $58,300K ÷ $2,132,700K
= 2.73%

Based on the provided data, Dave & Buster’s Entertainment has experienced fluctuations in its net profit margin over the past few years. The net profit margin, which is a key profitability ratio, indicates the company's ability to generate profit from its revenue after accounting for all expenses.

In January 2023, the net profit margin was 7.31%, reflecting a strong profitability level. However, this margin decreased to 6.98% by the end of January 2023. Subsequently, in January 2024, the net profit margin further declined to 5.75%, indicating a decrease in the company's ability to convert revenue into profit.

There was a slight improvement in the net profit margin to 6.14% by February 2024, but it did not reach the levels seen in January 2023. The most significant decrease occurred by January 31, 2025, when the net profit margin dropped to 2.73%, signaling a substantial decrease in profitability compared to the previous periods.

Overall, the trend in Dave & Buster’s Entertainment net profit margin shows some volatility and a general downward trajectory in recent years, which could be a cause for concern as it may suggest challenges in managing costs effectively or generating sufficient revenue to maintain profitability.