Dave & Buster’s Entertainment (PLAY)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	251,200	410,500	275,500	153,232	169,650
Debt-to-capital ratio		0.84	0.75	0.61	0.80	0.79

February 4, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,284,000K ÷ ($1,284,000K + $251,200K)
= 0.84

The debt-to-capital ratio of Dave & Buster’s Entertainment has exhibited some fluctuation over the past five years. In fiscal year 2024, the ratio stood at 0.84, indicating that debt represented 84% of the company's total capital structure. This represented an increase from the previous year when the ratio was 0.75. The trend over the prior years shows variability: in fiscal year 2023, the ratio was 0.61, in fiscal year 2022 it was 0.80, and in fiscal year 2021 it was 0.79.

The increasing trend in the debt-to-capital ratio may suggest that Dave & Buster’s has been relying more on debt financing to support its operations or growth initiatives. It is important for investors and analysts to closely monitor this ratio, as a high ratio may indicate higher financial risk due to increased debt levels. Conversely, a lower ratio may imply a healthier capital structure with less reliance on debt financing.

Further analysis and comparison with industry peers and historical data would provide additional context and insights into the company's capital structure strategy and financial health.