Darden Restaurants Inc (DRI)

Days of sales outstanding (DSO)

May 31, 2024 May 26, 2024 May 31, 2023 May 28, 2023 May 31, 2022
Receivables turnover 144.01 130.44
DSO days 2.53 2.80

May 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —

Days Sales Outstanding (DSO) is a measure of how long, on average, it takes for a company to collect payment from its customers. A lower DSO indicates that the company is able to collect revenue more quickly, which is generally considered favorable.

Based on the data provided for Darden Restaurants Inc:
- On May 28, 2023, the DSO was 2.80 days, indicating that on average, Darden Restaurants Inc collected payments from its customers within approximately 2.80 days.
- On May 26, 2024, the DSO decreased to 2.53 days, suggesting further improvement in Darden's ability to collect revenue promptly.

The periods where DSO values were not provided (indicated as "— days") make it challenging to analyze trends comprehensively. However, the decreasing trend in DSO from 2023 to 2024 suggests that Darden Restaurants Inc may be managing its receivables effectively, translating to potential strong cash flow generation from its sales. Further data points across multiple periods would provide a more robust insight into the company's collection efficiency over time.