Darden Restaurants Inc (DRI)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	4,291,400	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
Inventory	US$ in thousands	290,500	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
Inventory turnover		14.77	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

May 26, 2024 calculation

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

The inventory turnover ratio for Darden Restaurants Inc has shown a generally stable trend over the past several quarters, ranging between 12.50 and 17.46. The ratio measures how efficiently the company manages its inventory by indicating how many times the inventory is sold and replaced over a specific period. A higher inventory turnover ratio typically suggests that the company is effectively managing its inventory levels and quickly converting inventory into sales.

Darden Restaurants Inc's inventory turnover has consistently remained above 12, indicating efficient inventory management practices. The highest inventory turnover was recorded in Nov 2019 at 17.46, suggesting a rapid turnover of inventory during that period. While the ratios have fluctuated slightly, they have generally remained within a narrow range, indicating a consistent approach to managing inventory levels.

Overall, the data suggests that Darden Restaurants Inc has been effectively managing its inventory turnover, which is a positive indicator of operational efficiency in the company's supply chain and inventory management processes.