Dave & Buster’s Entertainment (PLAY)

Debt-to-capital ratio

Jan 31, 2025 Feb 4, 2024 Jan 31, 2024 Jan 31, 2023 Jan 29, 2023
Long-term debt US$ in thousands 1,284,000 1,222,700
Total stockholders’ equity US$ in thousands 145,800 251,200 251,200 410,535 410,500
Debt-to-capital ratio 0.00 0.84 0.00 0.00 0.75

January 31, 2025 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $145,800K)
= 0.00

The debt-to-capital ratio for Dave & Buster’s Entertainment provides insight into the company's capital structure and its reliance on debt financing. As of January 29, 2023, the ratio stood at 0.75, indicating that 75% of the company's capital was funded by debt. This suggests a moderate level of leverage at that time.

However, by January 31, 2023, and January 31, 2024, the debt-to-capital ratio dropped to 0.00, signaling a significant decrease in the company's debt relative to its capital. This could be attributed to various factors such as debt repayments or an increase in equity financing.

On February 4, 2024, the ratio increased to 0.84, indicating that 84% of the company's capital was funded by debt again, which might imply a resurgence in debt levels. Nonetheless, by January 31, 2025, the ratio had reverted to 0.00, suggesting a return to a minimal debt level relative to capital.

Overall, the fluctuation in Dave & Buster’s Entertainment's debt-to-capital ratio reflects changes in the company's financing decisions over the specified periods, highlighting the importance of monitoring such ratio to assess the firm's financial health and risk profile.