Darden Restaurants Inc (DRI)

Inventory turnover

		May 26, 2024	May 28, 2023	May 29, 2022	May 30, 2021	May 31, 2020
Cost of revenue	US$ in thousands	4,291,400	3,894,300	3,611,600	2,793,300	3,363,700
Inventory	US$ in thousands	290,500	287,900	270,600	190,800	206,900
Inventory turnover		14.77	13.53	13.35	14.64	16.26

May 26, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $4,291,400K ÷ $290,500K
= 14.77

Darden Restaurants Inc's inventory turnover has displayed a decreasing trend over the past five years, with the ratio declining from 16.26 in May 2020 to 14.77 in May 2024. This suggests that the company is taking longer to sell its inventory in recent years. While a higher inventory turnover ratio is generally favorable as it indicates efficient management of inventory levels, Darden Restaurants Inc may need to assess its inventory management strategy to improve turnover and optimize its cash flow. Additional analysis of the company's inventory management practices and sales performance may provide further insights into this trend and potential areas for improvement.