Darden Restaurants Inc (DRI)

Days of sales outstanding (DSO)

		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
Receivables turnover		144.01	154.66	136.70	181.54	130.44	178.49	138.93	191.70	133.13	176.17	123.91	117.76	105.29	141.27	147.49	152.50	156.58	171.03	152.46	167.95
DSO	days	2.53	2.36	2.67	2.01	2.80	2.04	2.63	1.90	2.74	2.07	2.95	3.10	3.47	2.58	2.47	2.39	2.33	2.13	2.39	2.17

May 26, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 144.01
= 2.53

Days of Sales Outstanding (DSO) is a measure of how efficiently a company collects its accounts receivable. A lower DSO indicates that the company is collecting its accounts receivable more quickly, which is generally considered positive.

Looking at the DSO trend for Darden Restaurants Inc over the past few quarters, we observe some fluctuations. The DSO has ranged from a low of 1.90 days to a high of 3.47 days.

On average, Darden Restaurants Inc has maintained a relatively low DSO, which suggests that the company is efficiently collecting its receivables. However, there have been periods where the DSO increased, indicating a potential delay in receiving payments from customers.

It is important for Darden Restaurants Inc to closely monitor its DSO and take necessary actions to ensure that it remains at an optimal level. This can include implementing more stringent credit policies, improving collection processes, or addressing any issues with slow-paying customers.

Overall, while the DSO for Darden Restaurants Inc has shown some variability, the company's ability to consistently manage and maintain a low DSO reflects positively on its accounts receivable management.