Dave & Buster’s Entertainment (PLAY)
Return on total capital
| Feb 4, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 306,600 | 262,508 | 187,181 | -253,516 | 148,079 |
| Long-term debt | US$ in thousands | 1,284,000 | 1,222,700 | 431,395 | 596,388 | 632,689 |
| Total stockholders’ equity | US$ in thousands | 251,200 | 410,500 | 275,500 | 153,232 | 169,650 |
| Return on total capital | 19.97% | 16.07% | 26.48% | -33.82% | 18.46% |
February 4, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $306,600K ÷ ($1,284,000K + $251,200K)
= 19.97%
Dave & Buster’s Entertainment's return on total capital has fluctuated over the past five years. In the latest fiscal year (Feb 4, 2024), the return on total capital was 19.97%, showing an improvement compared to the previous year (Jan 29, 2023) when it stood at 16.07%. The return on total capital was notably high in Jan 30, 2022, at 26.48%, indicating efficient capital utilization.
However, there was a significant decline in return on total capital in Jan 31, 2021, where it was -33.82%, suggesting that the company's capital investments did not generate positive returns during that period. Nevertheless, the return on total capital rebounded strongly in Feb 2, 2020, reaching 18.46%.
Overall, the fluctuating trend in return on total capital indicates that Dave & Buster’s Entertainment has experienced varying levels of effectiveness in generating returns from its total capital investments over the past five years. The company may need to focus on consistently improving and maintaining efficient capital allocation strategies to maximize shareholder value.
Peer comparison
Feb 4, 2024