Dave & Buster’s Entertainment (PLAY)

Net profit margin

		Feb 4, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020
Net income	US$ in thousands	126,900	137,135	108,640	-206,974	100,263
Revenue	US$ in thousands	2,066,500	1,875,440	1,243,140	436,512	1,354,690
Net profit margin		6.14%	7.31%	8.74%	-47.42%	7.40%

February 4, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $126,900K ÷ $2,066,500K
= 6.14%

Over the past five years, Dave & Buster’s Entertainment has demonstrated varying levels of net profit margin. In the most recent fiscal year ending Feb 4, 2024, the net profit margin stood at 6.14%, indicating that the company generated a net profit of approximately 6.14% for every dollar of revenue earned. This figure represents a decline from the previous fiscal year, where the net profit margin was 7.31%.

Looking back further, we see that the company experienced a significant dip in net profit margin in the fiscal year ending Jan 31, 2021, with a negative net profit margin of -47.42%. This suggests that the company incurred losses during that period, which is a concerning trend from a profitability perspective.

On a more positive note, the net profit margin rebounded in the fiscal year ending Jan 30, 2022, reaching 8.74%. This indicates that the company was able to improve its profitability significantly compared to the previous year. Additionally, in the fiscal year ending Feb 2, 2020, the net profit margin was 7.40%, demonstrating a relatively stable performance in terms of profitability.

In conclusion, Dave & Buster’s Entertainment has exhibited fluctuations in net profit margin over the past five years, with a mix of positive and negative trends. It is important for the company to focus on sustaining or improving profitability levels to ensure long-term financial health and sustainability.