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PLAY (Dave & Buster's Entertainment) Altman Z2-Score : 0.54 (As of Dec. 12, 2024)


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What is Dave & Buster's Entertainment Altman Z2-Score?

Altman Z2-Score, also known as Z"-Score, is used to predict the likelihood that a non-manufacturing company (excluding property/financial company) will face bankruptcy within a two-year period.

Warning Sign:

Dave & Buster's Entertainment has a Altman Z2-Score of 0.54, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

The zones of discrimination were as such:

When Altman Z2-Score <= 1.1, it is in Distress Zones.
When Altman Z2-Score >= 2.6, it is in Safe Zones.
When Altman Z2-Score is between 1.1 and 2.6, it is in Grey Zones.

The historical rank and industry rank for Dave & Buster's Entertainment's Altman Z2-Score or its related term are showing as below:

PLAY' s Altman Z2-Score Range Over the Past 10 Years
Min: -0.77   Med: 0.73   Max: 1.7
Current: 0.54

During the past 13 years, Dave & Buster's Entertainment's highest Altman Z2-Score was 1.70. The lowest was -0.77. And the median was 0.73.


Dave & Buster's Entertainment Altman Z2-Score Historical Data

The historical data trend for Dave & Buster's Entertainment's Altman Z2-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Dave & Buster's Entertainment Altman Z2-Score Chart

Dave & Buster's Entertainment Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Altman Z2-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.51 -0.77 0.65 0.74 0.58

Dave & Buster's Entertainment Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
Altman Z2-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.59 0.58 0.58 0.59 0.54

Competitive Comparison of Dave & Buster's Entertainment's Altman Z2-Score

For the Entertainment subindustry, Dave & Buster's Entertainment's Altman Z2-Score, along with its competitors' market caps and Altman Z2-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Dave & Buster's Entertainment's Altman Z2-Score Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Dave & Buster's Entertainment's Altman Z2-Score distribution charts can be found below:

* The bar in red indicates where Dave & Buster's Entertainment's Altman Z2-Score falls into.



Dave & Buster's Entertainment Altman Z2-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

Z2-Score, also known as Z"-Score is the Z-Score for non-manufacturing companies excluding property/financial companies.

Dave & Buster's Entertainment's Altman Z2-Score for today is calculated with this formula:

Z=6.56*X1+3.26*X2+6.72*X3+1.05*X4_2
=6.56*-0.0708+3.26*0.1645+6.72*0.0594+1.05*0.061
=0.54

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency. GuruFocus does not calculate Altman Z2-Score when X4_2 value is 0.

Trailing Twelve Months (TTM) ended in Oct. 2024:
Total Assets was $3,941 Mil.
Total Current Assets was $112 Mil.
Total Current Liabilities was $391 Mil.
Retained Earnings was $648 Mil.
Pre-Tax Income was -41.8 + 50.6 + 52.4 + 49.7 = $111 Mil.
Interest Expense was -30.2 + -31.3 + -30.4 + -31.4 = $-123 Mil.
Total Liabilities was $3,715 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(112 - 391)/3941.1
=-0.0708

X2=Retained Earnings/Total Assets
=648.2/3941.1
=0.1645

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(110.9 - -123.3)/3941.1
=0.0594

X4_2=Net Worth/Total Liabilities
=(Total Stockholders Equity - Preferred Stock)/Total Liabilities
=(226.6 - 0)/3714.5
=0.061

The zones of discrimination were as such:

Distress Zones - 1.1 < Grey Zones < 2.6 - Safe Zones

Dave & Buster's Entertainment has a Altman Z2-Score of 0.54 indicating it is in Distress Zones.


Dave & Buster's Entertainment  (NAS:PLAY) Altman Z2-Score Explanation

The original Z-Score model was based on publicly traded manufacturing companies while the Z2-Score, also known as Z"-score can be used for any type of company excluding property/financial companies. Both Z-Score and Z2-Score describes the financial health of a company, and its likelihood of financial distress.

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4_2, Net Worth (Total Stockholders Equity - Preferred Stock)/Total Liabilities (NW/TL): it compares a company’s stock net worth with its total liabilities and can be used to assess the extent of its reliance on debt.

Read more about Altman Z2-Score, the original research on Z-Score and the additional research on Z2-Score.


Be Aware

Altman Z2-Score does not apply to financial companies.


Dave & Buster's Entertainment Altman Z2-Score Related Terms

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Dave & Buster's Entertainment Business Description

Traded in Other Exchanges
Address
1221 Beltline Road, Suite 500, Coppell, TX, USA, 75019
Dave & Buster's Entertainment Inc owns and operates nearly a hundred entertainment and dining establishments in the United States where customers can eat, drink, play games, and watch televised sports. Each store offers a full menu of entries and appetizers, a complete selection of alcoholic and non-alcoholic beverages, and an extensive assortment of entertainment attractions centered around playing games and watching live sports and other televised events. It derives maximum revenue from Entertainment.
Executives
Christopher Daniel Morris officer: Chief Executive Officer
Steve Klohn officer: SVP Chief Information Officer 1221 S. BELT LINE RD., SUITE 500, COPPELL TX 75019
Michael J Griffith director DAVE & BUSTER'S ENTERTAINMENT, INC., 2481 MANANA DRIVE, DALLAS TX 75220
Kevin M Sheehan director DAVE & BUSTER'S ENTERTAINMENT INC., 2481 MANANA DRIVE, DALLAS TX 75220
John Mulleady officer: SVP, RE & Dev DAVE & BUSTER'S ENTERTAINMENT, INC., 2481 MANANA DRIVE, DALLAS TX 75220
Antonio Pineiro officer: SVP, Chief Int'l Dev Ofc 1221 S. BELT LINE RD., SUITE 500, COOPELL TX 75220
Randall L Jones officer: VP Accounting and Controller 1221 S. BELT LINE RD., SUITE 500, COPPELL TX 75019
Ashley Zickefoose officer: SVP, Chief Marketing Officer 1221 S. BELT LINE RD., SUITE 500, COPPELL TX 75019
Hill Path Capital Partners Lp other: SEE EXPLANATION OF RESPONSES 150 EAST 58TH STREET, 32ND FLOOR, NEW YORK NY 10155
Hill Path D Fund Lp other: SEE FOOTNOTE 1 150 E 58TH STREET, FLOOR 32, NEW YORK NY 10155
Hp J Gp Llc other: SEE EXPLANATION OF RESPONSES 150 EAST 58TH STREET, 32ND FLOOR, NEW YORK NY 10019
Hill Path J Fund Lp other: SEE EXPLANATION OF RESPONSES 150 EAST 58TH STREET, 32ND FLOOR, NEW YORK NY 10019
Hp G Gp Llc other: SEE EXPLANATION OF RESPONSES 150 EAST 58TH STREET, 32ND FLOOR, NEW YORK NY 10019
Hill Path G Fund Lp other: SEE EXPLANATION OF RESPONSES 150 EAST 58TH STREET, 32ND FLOOR, NEW YORK NY 10019
Michael Quartieri officer: Chief Financial Officer C/O SCIENTIFIC GAMES CORPORATION, 6601 BERMUDA ROAD, LAS VEGAS NV 89119