Darden Restaurants Inc (DRI)
Fixed asset turnover
| May 26, 2024 | May 28, 2023 | May 29, 2022 | May 30, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 11,391,500 | 10,461,500 | 9,585,300 | 7,181,100 | 7,748,300 |
| Property, plant and equipment | US$ in thousands | 6,691,900 | 6,084,700 | 5,588,400 | 5,257,000 | 2,756,900 |
| Fixed asset turnover | 1.70 | 1.72 | 1.72 | 1.37 | 2.81 |
May 26, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $11,391,500K ÷ $6,691,900K
= 1.70
Darden Restaurants Inc's fixed asset turnover has shown some fluctuations over the past five years. The ratio was 1.70 in 2024, slightly lower than the previous year's 1.72. This indicates that, on average, Darden generated $1.70 in sales for each dollar invested in fixed assets in 2024.
Comparing this to the ratio in 2020, which was unusually high at 2.81, it's evident that Darden was more efficient in utilizing its fixed assets in that year. However, in 2021, the ratio dropped to 1.37, indicating a decrease in efficiency in converting fixed assets into sales.
Despite the fluctuations, the general trend shows that Darden has been fairly consistent in generating revenue from its fixed assets over the past five years, with 2020 standing out as a particularly efficient year. The slight decline in 2024 compared to the previous year may warrant further investigation into the company's operational efficiency and asset utilization strategies.
Peer comparison
May 26, 2024