Darden Restaurants Inc (DRI)
Inventory turnover
| May 28, 2023 | May 29, 2022 | May 30, 2021 | May 31, 2020 | May 26, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,894,300 | 3,611,600 | 2,793,300 | 3,363,700 | 3,451,400 |
| Inventory | US$ in thousands | 287,900 | 270,600 | 190,800 | 206,900 | 207,300 |
| Inventory turnover | 13.53 | 13.35 | 14.64 | 16.26 | 16.65 |
May 28, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,894,300K ÷ $287,900K
= 13.53
The inventory turnover of Darden Restaurants, Inc. has been consistently high over the past five years, indicating efficient management of inventory. The ratio has trended downwards from 32.13 in 2019 to 29.19 in 2023, implying a slight decrease in the frequency of inventory turnover. A high inventory turnover signifies that the company is effectively selling and replenishing its inventory, which is a positive indicator of operational efficiency. However, it's important to note that a declining trend may warrant further analysis to understand any underlying factors influencing the change. Overall, the consistently high inventory turnover suggests effective inventory management within Darden Restaurants, Inc.
Peer comparison
May 28, 2023