Dave & Buster’s Entertainment (PLAY)
Solvency ratios
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 4, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Apr 30, 2022 | Jan 31, 2022 | Jan 30, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.34 | 0.00 | 0.00 | 0.35 | 0.00 | 0.34 | 0.00 | 0.00 | 0.33 | 0.00 | 0.33 | 0.00 | 0.18 | 0.00 | 0.00 | 0.18 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.84 | 0.00 | 0.00 | 0.86 | 0.00 | 0.80 | 0.00 | 0.00 | 0.75 | 0.00 | 0.77 | 0.00 | 0.55 | 0.00 | 0.00 | 0.61 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 5.11 | 0.00 | 0.00 | 6.06 | 0.00 | 4.07 | 0.00 | 0.00 | 2.98 | 0.00 | 3.39 | 0.00 | 1.23 | 0.00 | 0.00 | 1.57 |
| Financial leverage ratio | 27.54 | 17.39 | 13.48 | 12.94 | 14.95 | 14.95 | 17.48 | 17.48 | 11.86 | 11.86 | 10.27 | 9.16 | 9.16 | 10.21 | 10.21 | 10.24 | 6.94 | 6.95 | 8.52 | 8.51 |
The solvency ratios of Dave & Buster’s Entertainment indicate the company's ability to meet its long-term financial obligations using various financial measures.
- Debt-to-assets ratio: This ratio evaluates the proportion of the company's assets financed by debt. The trend shows fluctuations between 0% and 35% over the analyzed periods. The lower the ratio, the lower the financial risk, indicating that the company relies less on debt to fund its operations.
- Debt-to-capital ratio: This ratio reflects the amount of debt relative to the company's total capital, which includes both debt and equity. The values fluctuate between 0% and 86% over the observed periods. Lower ratios suggest a lower financial risk and less dependence on borrowing for financing.
- Debt-to-equity ratio: This ratio signifies the proportion of the company's assets funded by debt relative to equity. The values oscillate between 0% and 6% across the evaluation periods. A lower ratio indicates less reliance on debt and a stronger financial position.
- Financial leverage ratio: This ratio assesses the company's level of financial risk and measures the extent of debt in the company's capital structure. The ratio varies between 7x and 28x during the analyzed periods. Higher ratios imply higher financial risk due to increased debt levels.
Overall, the solvency ratios of Dave & Buster’s Entertainment depict a varying level of reliance on debt to finance its operations. It is essential for the company to maintain a balance between debt and equity to ensure long-term financial stability and meet its obligations effectively.
Coverage ratios
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 4, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Apr 30, 2022 | Jan 31, 2022 | Jan 30, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 1.62 | 1.97 | 2.82 | 2.32 | 1.78 | 1.75 | 1.59 | 2.39 | 2.76 | 2.77 | 2.48 | 1.76 | 1.84 | 2.51 | 4.14 | 5.77 | 6.22 | 4.48 | 3.88 | 4.47 |
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher ratio indicates a stronger ability to cover interest expenses. Looking at the interest coverage data for Dave & Buster’s Entertainment, we observe fluctuations in the ratio over time.
The interest coverage ratio ranged between 1.59 and 6.22 during the period from January 30, 2022, to January 31, 2025. In the initial years, the ratio was relatively stable, around 4 to 6, indicating a comfortable ability to cover interest expenses. However, in more recent periods, the ratio declined, dropping to below 2 in some quarters.
A declining interest coverage ratio can be a cause for concern as it may signal a higher risk of default on debt obligations. Dave & Buster’s Entertainment should monitor and potentially take action to improve its interest coverage ratio to ensure financial stability and meet its debt obligations in the long term.