Dave & Buster’s Entertainment (PLAY)
Interest coverage
| Jan 31, 2025 | Feb 4, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 29, 2023 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 205,200 | 306,600 | 295,200 | 257,569 | 262,508 |
| Interest expense | US$ in thousands | 135,300 | 127,400 | 132,100 | 87,363 | 87,400 |
| Interest coverage | 1.52 | 2.41 | 2.23 | 2.95 | 3.00 |
January 31, 2025 calculation
Interest coverage = EBIT ÷ Interest expense
= $205,200K ÷ $135,300K
= 1.52
The interest coverage ratio for Dave & Buster’s Entertainment has shown a declining trend over the past few years. Starting at 3.00 in January 29, 2023, it decreased to 2.95 by January 31, 2023, indicating a slight deterioration in the company's ability to cover its interest expenses. Subsequently, the ratio dropped to 2.23 by January 31, 2024, and improved slightly to 2.41 by February 4, 2024. However, by January 31, 2025, the interest coverage ratio decreased significantly to 1.52, suggesting a potential challenge in meeting interest obligations with the company's earnings. This declining trend in the interest coverage ratio raises concerns about Dave & Buster’s Entertainment's ability to comfortably cover its interest expenses in the future.
Peer comparison
Jan 31, 2025