Darden Restaurants Inc (DRI)

Inventory turnover

		Feb 28, 2025	Nov 30, 2024	Aug 31, 2024	May 31, 2024	May 26, 2024	Feb 29, 2024	Feb 25, 2024	Nov 30, 2023	Nov 26, 2023	Aug 31, 2023	Aug 27, 2023	May 31, 2023	May 28, 2023	Feb 28, 2023	Feb 26, 2023	Nov 30, 2022	Nov 27, 2022	Aug 31, 2022	Aug 28, 2022	May 31, 2022
Cost of revenue (ttm)	US$ in thousands	7,844,100	8,004,800	8,174,600	7,057,400	6,815,500	6,733,800	6,459,600	6,450,100	6,439,500	6,447,900	6,476,500	6,419,900	6,297,200	6,186,200	6,073,000	5,974,500	6,088,100	6,128,200	5,987,000	5,983,600
Inventory	US$ in thousands	324,600	318,000	297,700	290,500	290,500	298,200	298,200	310,600	310,600	287,000	287,000	287,900	287,900	305,900	305,900	296,100	296,100	273,100	273,100	270,600
Inventory turnover		24.17	25.17	27.46	24.29	23.46	22.58	21.66	20.77	20.73	22.47	22.57	22.30	21.87	20.22	19.85	20.18	20.56	22.44	21.92	22.11

February 28, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $7,844,100K ÷ $324,600K
= 24.17

The inventory turnover ratio for Darden Restaurants Inc has exhibited fluctuations over the period provided. The ratio indicates how efficiently the company is managing its inventory by measuring how many times the inventory is sold and replaced within a given time frame.

From May 31, 2022, to May 31, 2023, there was a gradual increase in the inventory turnover ratio from 22.11 to 22.30, suggesting an improvement in inventory management efficiency.

However, the ratio decreased slightly to 22.47 by the end of August 31, 2023, before dropping further to 20.77 by November 30, 2023. This decline may indicate potential issues such as excess inventory, slowing sales, or ineffective inventory control.

The ratio then showed a recovery, reaching a high of 24.29 by May 31, 2024, signaling a positive trend in managing inventory levels more effectively.

By the end of the period, on February 28, 2025, the inventory turnover ratio stood at 24.17, reflecting a relatively stable and healthy turnover rate. This indicates that Darden Restaurants Inc is efficiently managing its inventory by balancing stock levels to meet customer demand without overstocking.

Overall, while there were fluctuations in the inventory turnover ratio during the period, the general trend suggests that Darden Restaurants Inc has been successful in optimizing its inventory management practices to enhance operational efficiency and financial performance.