Dave & Buster’s Entertainment (PLAY)

Return on equity (ROE)

		Feb 4, 2024	Oct 29, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Nov 1, 2020	Aug 2, 2020	May 3, 2020	Feb 2, 2020	Nov 3, 2019	Aug 4, 2019	May 5, 2019
Net income (ttm)	US$ in thousands	126,900	129,945	137,063	140,251	137,151	123,656	132,323	156,005	108,640	26,205	-32,423	-143,795	-206,974	-125,207	-76,682	14,276	100,263	104,717	116,091	117,514
Total stockholders’ equity	US$ in thousands	251,200	211,600	314,400	359,900	410,500	361,000	356,400	351,800	275,500	246,559	229,875	178,642	153,232	206,774	250,371	192,635	169,650	148,121	249,302	360,125
ROE		50.52%	61.41%	43.60%	38.97%	33.41%	34.25%	37.13%	44.34%	39.43%	10.63%	-14.10%	-80.49%	-135.07%	-60.55%	-30.63%	7.41%	59.10%	70.70%	46.57%	32.63%

February 4, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $126,900K ÷ $251,200K
= 50.52%

Dave & Buster’s Entertainment has shown varying levels of return on equity (ROE) over the past 2 years. In the most recent quarter, the company achieved an ROE of 50.52%, indicating that for every dollar of shareholders' equity, the company generated a profit of $0.5052. This is a positive sign as it shows the company is effectively utilizing its equity to generate earnings for its shareholders.

Looking at the trend over the past 2 years, there have been fluctuations in ROE, with some quarters showing strong performance while others were less favorable. The ROE was highest in the second quarter of 2023 at 61.41% and lowest in the third quarter of 2021 at -135.07%.

It is important to note that negative ROE figures, such as the one in the third quarter of 2021, indicate that the company's net income was insufficient to cover its equity. This could be a red flag for investors as it suggests the company may be experiencing financial difficulties or operating inefficiencies.

Overall, while Dave & Buster’s Entertainment has shown strong ROE in some quarters, investors should monitor the trend closely to assess the company's financial health and performance.