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Dave & Buster's Entertainment (Dave & Buster's Entertainment) Altman Z-Score : 1.33 (As of Apr. 29, 2024)


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

The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Warning Sign:

Altman Z-score of 1.32 is in distress zone. This implies bankruptcy possibility in the next two years.

Dave & Buster's Entertainment has a Altman Z-Score of 1.33, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

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

PLAY' s Altman Z-Score Range Over the Past 10 Years
Min: 0.33   Med: 1.7   Max: 3.75
Current: 1.32

During the past 13 years, Dave & Buster's Entertainment's highest Altman Z-Score was 3.75. The lowest was 0.33. And the median was 1.70.


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

The historical data trend for Dave & Buster's Entertainment's Altman Z-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 Z-Score Chart

Dave & Buster's Entertainment Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.29 0.33 1.42 1.25 1.33

Dave & Buster's Entertainment Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Altman Z-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 1.25 1.24 1.33 1.20 1.33

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

For the Entertainment subindustry, Dave & Buster's Entertainment's Altman Z-Score, along with its competitors' market caps and Altman Z-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 Z-Score Distribution in the Media - Diversified Industry

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

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



Dave & Buster's Entertainment Altman Z-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.

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

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*-0.0794+1.4*0.1596+3.3*0.0755+0.6*0.6126+1.0*0.5874
=1.33

* 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 Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Jan. 2024:
Total Assets was $3,754 Mil.
Total Current Assets was $138 Mil.
Total Current Liabilities was $436 Mil.
Retained Earnings was $599 Mil.
Pre-Tax Income was 49.7 + -10.3 + 33 + 90.7 = $163 Mil.
Interest Expense was -27.8 + -28.9 + -32.9 + -30.7 = $-120 Mil.
Revenue was 599 + 466.9 + 542.1 + 597.3 = $2,205 Mil.
Market Cap (Today) was $2,146 Mil.
Total Liabilities was $3,503 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
=(137.5 - 435.6)/3754.4
=-0.0794

X2=Retained Earnings/Total Assets
=599.2/3754.4
=0.1596

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(163.1 - -120.3)/3754.4
=0.0755

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=2145.943/3503.2
=0.6126

X5=Revenue/Total Assets
=2205.3/3754.4
=0.5874

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Dave & Buster's Entertainment has a Altman Z-Score of 1.33 indicating it is in Distress Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


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

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, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


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

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Dave & Buster's Entertainment (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. The play division includes amusement, simulation, and video games, accounts for more than half of total company revenue. Food and beverage accounts for the rest. About one third of food and beverage revenue comes from alcoholic drinks, with the rest coming from food and nonalcoholic beverages.
Executives
John Mulleady officer: SVP, RE & Dev DAVE & BUSTER'S ENTERTAINMENT, INC., 2481 MANANA DRIVE, DALLAS TX 75220
Michael J Griffith director 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 G Gp Llc other: SEE EXPLANATION OF RESPONSES 150 EAST 58TH STREET, 32ND FLOOR, NEW YORK NY 10019
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
Hill Path G Fund Lp other: SEE EXPLANATION OF RESPONSES 150 EAST 58TH STREET, 32ND FLOOR, NEW YORK NY 10019
Steve Klohn officer: SVP Chief Information Officer 1221 S. BELT LINE RD., SUITE 500, COPPELL TX 75019
Michael Quartieri officer: Chief Financial Officer C/O SCIENTIFIC GAMES CORPORATION, 6601 BERMUDA ROAD, LAS VEGAS NV 89119
Tony Wehner officer: SVP, Chief Operating Officer 1221 S. BELT LINE RD., SUITE 500, COPPELL TX 75019
Les Lehner officer: SVP, Chief Procurement Ofc 1221 S. BELT LINE RD., SUITE 500, COPPELL TX 75019