Dave & Buster’s Entertainment (PLAY)

Operating return on assets (Operating ROA)

Jan 31, 2025 Feb 4, 2024 Jan 31, 2024 Jan 31, 2023 Jan 29, 2023
Operating income US$ in thousands 220,400 306,600 306,600 262,508 262,500
Total assets US$ in thousands 4,015,800 3,754,400 3,754,400 3,760,990 3,761,000
Operating ROA 5.49% 8.17% 8.17% 6.98% 6.98%

January 31, 2025 calculation

Operating ROA = Operating income ÷ Total assets
= $220,400K ÷ $4,015,800K
= 5.49%

The operating return on assets (operating ROA) of Dave & Buster’s Entertainment has shown fluctuations over the observed period. The ratio stood at 6.98% as of January 29, 2023, and remained constant at the same level on January 31, 2023. Subsequently, there was an increase in the operating ROA to 8.17% as of January 31, 2024, and this level was maintained until February 4, 2024. However, there was a decline in the operating ROA to 5.49% as of January 31, 2025.

This trend indicates that the company's ability to generate operating income from its assets varied over the specified period, reaching a peak in January 2024 before decreasing in the following year. It is essential for Dave & Buster’s management to assess the factors contributing to these fluctuations in operating ROA and implement strategic measures to improve asset utilization efficiency and profitability.