Darden Restaurants Inc (DRI)

Number of days of payables

May 31, 2025 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
Payables turnover 14.58 18.52 19.31 19.80 17.07 16.76 16.30 15.91 15.22 15.19 15.37 15.43 15.06 14.78 14.60 14.33 13.73 13.77 14.83 14.49
Number of days of payables days 25.04 19.71 18.91 18.44 21.38 21.77 22.40 22.94 23.99 24.03 23.75 23.65 24.23 24.70 25.01 25.47 26.59 26.50 24.61 25.20

May 31, 2025 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 14.58
= 25.04

The analysis of Darden Restaurants Inc.'s number of days of payables over the observed period demonstrates a general downward trend, indicating an improvement in the company's efficiency in managing its payable obligations. Initially, in late August 2022, the payable days were approximately 25.20 days, with minor fluctuations observed through November 2022, reaching a peak of 26.59 days. This suggests that, during this period, Darden was taking approximately 25 to 26.5 days to settle its payables, aligning with typical payment terms in the restaurant industry.

Moving into 2023, the payable days decreased slightly, maintaining a range around 24.23 to 25.47 days in the first half of the year. Notably, from August 2023 onward, a consistent decline in days payable is observed, reaching a low of approximately 18.44 days by August 2024. This decline indicates that the company was paying its suppliers more promptly, reducing its cash conversion cycle related to accounts payable.

However, in early 2025, the data points signal an increase, with payable days rising to around 25.04 days in May 2025. This may reflect a temporary extension of payment terms or strategic adjustments in supplier relationships.

Overall, the trend reveals a trajectory of improving accounts payable management, with the days payable decreasing from over 25 days to below 19 days in 2024 before a slight uptick in 2025. This pattern can suggest enhanced liquidity management, possibly driven by better cash flow positions, strategic supplier negotiations, or changes in payment policies. The fluctuation emphasizes the importance of monitoring ongoing operational strategies and broader market conditions impacting payment timings.