Darden Restaurants Inc (DRI)

Payables turnover

		May 26, 2024	May 28, 2023	May 29, 2022	May 30, 2021	May 31, 2020
Cost of revenue	US$ in thousands	4,291,400	3,894,300	3,611,600	2,793,300	3,363,700
Payables	US$ in thousands	399,500	426,200	366,900	304,500	249,400
Payables turnover		10.74	9.14	9.84	9.17	13.49

May 26, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $4,291,400K ÷ $399,500K
= 10.74

The payables turnover ratio for Darden Restaurants Inc has fluctuated over the past five years. In May 2024, the company achieved a payables turnover ratio of 10.74, indicating that Darden is able to pay off its accounts payable approximately 10.74 times during the year. This represents an improvement from the previous year when the ratio was 9.14.

Comparing to the data from May 29, 2022, Darden's payables turnover ratio slightly decreased from 9.84 to 9.17 in May 30, 2021, before experiencing a significant increase to 13.49 in May 31, 2020. This suggests that in 2020, the company was more efficient in managing its accounts payable compared to the other years analyzed.

Overall, the trend in Darden's payables turnover ratio shows variability in the company's ability to pay off its suppliers and manage its accounts payable efficiently over the years, with the ratio peaking in 2020. It is important for stakeholders to further investigate the reasons behind these fluctuations to assess the company's financial health and supplier relationships.