Darden Restaurants Inc (DRI)

Days of inventory on hand (DOH)

		Feb 28, 2025	Nov 30, 2024	Aug 31, 2024	May 31, 2024	May 26, 2024	Feb 29, 2024	Feb 25, 2024	Nov 30, 2023	Nov 26, 2023	Aug 31, 2023	Aug 27, 2023	May 31, 2023	May 28, 2023	Feb 28, 2023	Feb 26, 2023	Nov 30, 2022	Nov 27, 2022	Aug 31, 2022	Aug 28, 2022	May 31, 2022
Inventory turnover		24.17	25.17	27.46	24.29	23.46	22.58	21.66	20.77	20.73	22.47	22.57	22.30	21.87	20.22	19.85	20.18	20.56	22.44	21.92	22.11
DOH	days	15.10	14.50	13.29	15.02	15.56	16.16	16.85	17.58	17.61	16.25	16.17	16.37	16.69	18.05	18.39	18.09	17.75	16.27	16.65	16.51

February 28, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 24.17
= 15.10

The days of inventory on hand (DOH) for Darden Restaurants Inc has shown a fluctuating trend over the reported periods, ranging from a low of 13.29 days to a high of 18.39 days. Generally, a lower DOH indicates more efficient inventory management, as it suggests that inventory is being sold quickly.

Darden Restaurants Inc managed to decrease its DOH from May 2022 to August 2024, indicating an improvement in inventory turnover and potentially more effective management of inventory levels. However, there was a slight uptick in DOH in the last reported period from February 2025.

It is important for Darden Restaurants Inc to continue monitoring its DOH to ensure optimal inventory levels that balance between meeting customer demand and avoiding excess holding costs. Further analysis of the reasons behind fluctuations in DOH, such as changes in sales volume, purchasing patterns, or supply chain disruptions, may provide valuable insights for strategic decision-making regarding inventory management.