Dave & Buster’s Entertainment (PLAY)

Debt-to-equity 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-equity ratio		5.11	2.98	1.57	3.89	3.73

February 4, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,284,000K ÷ $251,200K
= 5.11

The trend analysis of Dave & Buster’s Entertainment's debt-to-equity ratio reveals fluctuations over the past five years. The ratio stood at 5.11 in February 2024, indicating a significant increase compared to the prior year which was 2.98 in January 2023. This increment suggests a notable rise in debt relative to equity in the latest period.

Furthermore, when comparing the current ratio to the trend observed over the past five years, it is apparent that there has been some volatility. In January 2022, the ratio was at 1.57, showcasing a lower level of debt relative to equity compared to the previous year, but then spiked to 3.89 in January 2021, signifying a substantial increase in debt compared to equity.

Moreover, the debt-to-equity ratio in February 2020 was 3.73, which was slightly lower than the ratio recorded in January 2021. This trend indicates fluctuations in the capital structure of Dave & Buster’s Entertainment, showcasing varying levels of reliance on debt financing over the past five years.

In conclusion, the debt-to-equity ratio analysis reflects fluctuations in Dave & Buster’s capital structure, with varying levels of debt relative to equity observed over the past five years. Investors and stakeholders may need to further investigate the reasons behind these fluctuations to assess the company's financial health and risk profile effectively.