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