Darden Restaurants Inc (DRI)

Inventory turnover

		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	May 26, 2019
Cost of revenue (ttm)	US$ in thousands	4,218,100	4,152,000	4,049,400	3,894,300	3,823,400	3,721,500	3,649,600	3,609,900	3,471,900	3,220,400	3,006,500	2,839,400	2,397,300	2,669,100	2,878,600	3,046,400	3,560,600	3,510,000	3,474,400	3,451,400
Inventory	US$ in thousands	298,200	310,600	287,000	287,900	305,900	296,100	273,100	270,600	243,700	230,200	210,900	190,800	188,200	203,000	190,100	206,900	229,600	212,200	199,000	207,300
Inventory turnover		14.15	13.37	14.11	13.53	12.50	12.57	13.36	13.34	14.25	13.99	14.26	14.88	12.74	13.15	15.14	14.72	15.51	16.54	17.46	16.65

February 25, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $4,218,100K ÷ $298,200K
= 14.15

The inventory turnover ratio of Darden Restaurants Inc has shown consistent and healthy performance over the past few quarters. The company's inventory turnover ratio ranged between 12.50 to 17.46 during the period from May 26, 2019, to Feb 25, 2024. The higher the inventory turnover ratio, the more efficiently the company is managing its inventory levels.

Notably, the inventory turnover ratio peaked at 17.46 in Nov 24, 2019, indicating that Darden Restaurants Inc was able to convert its inventory into sales at a faster rate during that period. This trend demonstrates effective inventory management and could potentially lead to lower carrying costs and reduced risk of obsolete inventory.

Overall, the consistently high inventory turnover ratios of Darden Restaurants Inc reflect effective inventory management practices, which may contribute to improved financial performance and profitability.