Darden Restaurants Inc (DRI)

Days of inventory on hand (DOH)

		May 26, 2024	May 28, 2023	May 29, 2022	May 30, 2021	May 31, 2020
Inventory turnover		14.77	13.53	13.35	14.64	16.26
DOH	days	24.71	26.98	27.35	24.93	22.45

May 26, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 14.77
= 24.71

To analyze Darden Restaurants Inc's days of inventory on hand (DOH) over the past five years, we can observe the following trends:

1. Overall Trend: The DOH has fluctuated over the past five years, ranging from a low of 22.45 days in May 2020 to a high of 27.35 days in May 2022.

2. Decrease in 2020: There was a noticeable decrease in DOH in May 2020 compared to the previous year, indicating that Darden Restaurants managed its inventory more efficiently during that period.

3. Increase in 2022: However, there was an increase in DOH in May 2022, reaching 27.35 days, which suggests that the company may have faced challenges in managing its inventory effectively that year.

4. Current Level: As of May 2024, the DOH stands at 24.71 days, which is lower than the levels seen in 2022 and 2023 but slightly higher than in 2020 and 2021.

5. Industry Comparison: It would be beneficial to compare Darden Restaurants Inc's DOH to industry benchmarks to assess how efficiently the company is managing its inventory relative to its peers.

In conclusion, while Darden Restaurants Inc has seen fluctuations in its DOH over the past five years, the current level indicates a reasonable inventory management strategy. However, ongoing monitoring and potential improvements in inventory control practices may be beneficial for optimizing working capital management.