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.