Dave & Buster’s Entertainment (PLAY)

Debt-to-capital ratio

Feb 4, 2024 Oct 29, 2023 Jul 30, 2023 Apr 30, 2023 Jan 29, 2023 Oct 30, 2022 Jul 31, 2022 May 1, 2022 Jan 30, 2022 Oct 31, 2021 Aug 1, 2021 May 2, 2021 Jan 31, 2021 Nov 1, 2020 Aug 2, 2020 May 3, 2020 Feb 2, 2020 Nov 3, 2019 Aug 4, 2019 May 5, 2019
Long-term debt US$ in thousands 1,284,000 1,281,300 1,278,700 1,221,100 1,222,700 1,222,210 1,219,680 431,966 431,395 484,677 537,816 537,102 596,388 561,815 731,646 735,261 632,689 640,384 552,079 427,774
Total stockholders’ equity US$ in thousands 251,200 211,600 314,400 359,900 410,500 361,000 356,400 351,800 275,500 246,559 229,875 178,642 153,232 206,774 250,371 192,635 169,650 148,121 249,302 360,125
Debt-to-capital ratio 0.84 0.86 0.80 0.77 0.75 0.77 0.77 0.55 0.61 0.66 0.70 0.75 0.80 0.73 0.75 0.79 0.79 0.81 0.69 0.54

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 shown fluctuations over the past few periods. It increased from 0.54 in May 2019 to a peak of 0.86 in October 2023, indicating a higher proportion of debt financing relative to total capital during this period. Subsequently, the ratio decreased to 0.55 in May 2022 but then increased again to 0.84 by February 2024.

The company's debt-to-capital ratio has generally been on the higher side, ranging from 0.61 to 0.86 in the recent periods, suggesting a significant reliance on debt to finance its operations and growth initiatives. The ratio exceeding 0.5 indicates that more than half of the firm's capital structure is funded by debt rather than equity.

Investors and creditors often monitor the debt-to-capital ratio as a measure of the company's financial risk and leverage. A high debt-to-capital ratio can indicate higher financial risk, as the company may have higher interest expenses and debt repayment obligations. Conversely, a lower ratio may signify a more conservative capital structure.

It is important for stakeholders to assess this ratio in conjunction with other financial metrics and industry benchmarks to gain a comprehensive understanding of Dave & Buster’s financial health and risk profile.