Darden Restaurants Inc (DRI)
Payables turnover
| May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | May 31, 2022 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 8,979,800 | 4,291,400 | 8,404,400 | 3,894,300 | 7,635,000 |
| Payables | US$ in thousands | — | 399,500 | — | 426,200 | — |
| Payables turnover | — | 10.74 | — | 9.14 | — |
May 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $8,979,800K ÷ $—K
= —
The payables turnover ratio measures how efficiently Darden Restaurants Inc is managing its accounts payable. It indicates the number of times a company pays off its average accounts payable balance during a specific period. In this case, the payables turnover ratio for Darden Restaurants Inc was not available for May 31, 2022 and May 31, 2023, but for May 28, 2023 the ratio was 9.14, and for May 26, 2024, it improved to 10.74.
A higher payables turnover ratio suggests that the company is paying its suppliers more frequently, which may signify strong liquidity and efficient management of working capital. The increasing trend from 2023 to 2024 indicates that Darden Restaurants Inc has been more efficient in managing its accounts payable over time. However, the absence of data for certain periods limits a comprehensive assessment of the company's payables turnover performance. Further analysis of the underlying reasons for the fluctuation in the ratio would provide valuable insights into the company's financial management practices.
Peer comparison
May 31, 2024