Dave & Buster’s Entertainment (PLAY)

Operating return on assets (Operating ROA)

		Feb 4, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020
Operating income	US$ in thousands	306,600	262,500	187,181	-252,612	148,079
Total assets	US$ in thousands	3,754,400	3,761,000	2,345,790	2,352,820	2,370,140
Operating ROA		8.17%	6.98%	7.98%	-10.74%	6.25%

February 4, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $306,600K ÷ $3,754,400K
= 8.17%

Dave & Buster’s Entertainment has shown an improving trend in operating return on assets (ROA) over the past five fiscal years. The operating ROA increased from 6.25% in February 2020 to 8.17% in February 2024. This indicates that the company has been able to generate more operating income relative to its assets in recent years, which is a positive sign of operational efficiency.

The operating ROA fluctuated slightly during this period, reaching a low of -10.74% in January 2021. However, the subsequent recovery and upward trend suggest that Dave & Buster’s has taken measures to improve its asset utilization and operating performance. The consistent improvement in operating ROA signifies the company’s ability to effectively manage its assets to generate operating profits, which is crucial for long-term sustainability and growth.

Overall, the rising operating ROA of Dave & Buster’s Entertainment demonstrates a positive trend in operational efficiency and profitability, reflecting the company’s efforts to enhance asset productivity and generate stronger returns for its stakeholders.