Dave & Buster’s Entertainment (PLAY)

Return on equity (ROE)

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
Total stockholders’ equity US$ in thousands 145,800 251,200 251,200 410,535 410,500
ROE 39.99% 50.52% 50.52% 33.40% 33.41%

January 31, 2025 calculation

ROE = Net income ÷ Total stockholders’ equity
= $58,300K ÷ $145,800K
= 39.99%

Based on the provided data, the return on equity (ROE) for Dave & Buster’s Entertainment has shown some fluctuations over the years. In January 2023 and January 2024, the ROE was consistent at around 33.40% to 33.41%. This indicates that for every dollar of shareholders' equity, the company generated approximately 33-34 cents in net income.

However, there was a notable increase in ROE in January 2024 and February 2024, reaching 50.52%. This surge suggests that the company significantly improved its profitability and efficiency in generating profits from shareholders' equity during this period.

In the most recent data point in January 2025, the ROE decreased to 39.99%. Although lower than the peak in early 2024, this ROE figure still indicates a healthy return on equity, showing that Dave & Buster’s Entertainment continues to effectively utilize shareholder funds to generate profits.

Overall, the fluctuation in ROE values over the years may reflect changes in the company's financial performance, efficiency, and strategic decisions. Monitoring ROE can provide insights into how well Dave & Buster’s Entertainment is utilizing its equity to generate returns for its shareholders.