Dave & Buster’s Entertainment (PLAY)

Debt-to-assets ratio

		Feb 4, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020
Long-term debt	US$ in thousands	1,284,000	1,222,700	431,395	596,388	632,689
Total assets	US$ in thousands	3,754,400	3,761,000	2,345,790	2,352,820	2,370,140
Debt-to-assets ratio		0.34	0.33	0.18	0.25	0.27

February 4, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,284,000K ÷ $3,754,400K
= 0.34

The debt-to-assets ratio of Dave & Buster’s Entertainment has varied over the past five years, indicating the company's leverage and ability to cover its liabilities with its assets. In the most recent year, as of February 4, 2024, the debt-to-assets ratio was 0.34, which represents an increase from the previous year's ratio of 0.33. This suggests that the company's level of debt in relation to its total assets has slightly increased.

Comparing the current ratio to the ratios from the previous years, it is evident that the company's leverage has fluctuated. The ratio was notably higher in January 2022 at 0.18, signifying a lower level of debt relative to assets at that time. Subsequently, there was an increase in the ratio in the following years, reaching its highest point at 0.27 as of February 2, 2020, before the latest increase seen in 2024.

Overall, the increasing trend in the debt-to-assets ratio over the past five years may indicate that Dave & Buster’s Entertainment has been taking on more debt to finance its operations or expansion. This could potentially increase the company's financial risk as it becomes more leveraged. Further analysis of the company's financial health and overall performance would be necessary to fully assess the implications of these changes in the debt-to-assets ratio.