Dave & Buster’s Entertainment (PLAY)

Financial leverage ratio

Feb 4, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020
Total assets US$ in thousands 3,754,400 3,761,000 2,345,790 2,352,820 2,370,140
Total stockholders’ equity US$ in thousands 251,200 410,500 275,500 153,232 169,650
Financial leverage ratio 14.95 9.16 8.51 15.35 13.97

February 4, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,754,400K ÷ $251,200K
= 14.95

The financial leverage ratio of Dave & Buster’s Entertainment has exhibited fluctuations over the past five years. The ratio increased from 8.51 in January 2022 to 9.16 in January 2023, signaling a slight rise in the company's reliance on debt to finance its operations. However, there was a notable spike in the ratio to 14.95 in February 2024, indicating a significant increase in financial leverage compared to the previous years.

This surge in the financial leverage ratio could suggest that Dave & Buster’s has taken on more debt relative to its equity, which may pose risks in terms of repayment obligations and interest costs. It is essential for investors and stakeholders to monitor this trend closely to assess the company's ability to manage its debt levels effectively and maintain financial stability.


Peer comparison

Feb 4, 2024