Darden Restaurants Inc (DRI)

Days of inventory on hand (DOH)

		May 26, 2024	Feb 25, 2024	Nov 26, 2023	Aug 27, 2023	May 28, 2023	Feb 26, 2023	Nov 27, 2022	Aug 28, 2022	May 29, 2022	Feb 27, 2022	Nov 28, 2021	Aug 29, 2021	May 30, 2021	Feb 28, 2021	Nov 29, 2020	Aug 30, 2020	May 31, 2020	Feb 23, 2020	Nov 24, 2019	Aug 25, 2019
Inventory turnover		14.77	14.15	13.37	14.11	13.53	12.50	12.57	13.36	13.34	14.25	13.99	14.26	14.88	12.74	13.15	15.14	14.72	15.51	16.54	17.46
DOH	days	24.71	25.80	27.30	25.87	26.98	29.20	29.04	27.31	27.36	25.62	26.09	25.60	24.53	28.65	27.76	24.10	24.79	23.54	22.07	20.91

May 26, 2024 calculation

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

Days of Inventory on Hand (DOH) measures the number of days it takes for a company to sell its average inventory. A lower DOH indicates that inventory is being efficiently managed, while a higher DOH may suggest excess or slow-moving inventory.

Analyzing the trend in Darden Restaurants Inc's DOH over the past several quarters, we observe fluctuations in the metric. The DOH ranged from a low of 20.91 days to a high of 29.20 days during the period. This indicates some variability in how quickly the company is selling its inventory.

The DOH was generally in the mid to high 20s range, with occasional dips into the low 20s. This implies that Darden Restaurants Inc may have periods of more efficient inventory management where they sell through inventory at a faster rate, followed by times when inventory turnover slows down.

It is essential for Darden Restaurants Inc to closely monitor and manage its inventory levels to ensure optimal utilization and prevent overstocking. By analyzing the DOH trend, the company can identify opportunities to streamline inventory processes, reduce carrying costs, and enhance overall operational efficiency.