Darden Restaurants Inc (DRI)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	11,391,400	11,166,700	10,977,000	10,747,000	10,461,500	10,281,300	9,947,700	9,719,100	9,585,300	9,266,800	8,561,900	7,960,300	7,181,100	6,215,800	6,813,900	7,198,000	7,797,500	8,756,500	8,659,800	8,582,100
Property, plant and equipment	US$ in thousands	6,691,900	3,048,400	3,016,400	2,985,200	6,084,700	2,715,000	2,665,400	2,587,000	5,588,400	2,506,000	2,485,100	2,471,400	5,257,000	2,813,400	2,776,000	2,739,600	2,756,900	2,794,900	2,730,600	2,611,000
Fixed asset turnover		1.70	3.66	3.64	3.60	1.72	3.79	3.73	3.76	1.72	3.70	3.45	3.22	1.37	2.21	2.45	2.63	2.83	3.13	3.17	3.29

May 26, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $11,391,400K ÷ $6,691,900K
= 1.70

The fixed asset turnover ratio of Darden Restaurants Inc has shown fluctuations over the last several quarters. The ratio measures how efficiently the company is utilizing its fixed assets to generate revenue.

The trend indicates that the company's fixed asset turnover has generally been quite healthy, with the ratio ranging between 1.37 and 3.79. A higher fixed asset turnover ratio suggests that the company is effectively generating sales from its fixed assets.

Furthermore, the increasing trend in the fixed asset turnover from November 2021 to February 2024 is a positive sign, indicating that Darden Restaurants Inc has been improving its efficiency in utilizing its fixed assets to generate revenue.

However, the ratio experienced a slight decline in May 2024 which could be a point of concern. It would be important for the company to closely monitor this ratio to ensure that its fixed assets are being effectively utilized to drive sales and profitability.