Darden Restaurants Inc (DRI)
Payables turnover
| May 31, 2025 | May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,657,000 | 8,979,800 | 4,291,400 | 8,404,400 | 3,894,300 |
| Payables | US$ in thousands | 439,600 | 399,500 | 399,500 | 426,200 | 426,200 |
| Payables turnover | 8.32 | 22.48 | 10.74 | 19.72 | 9.14 |
May 31, 2025 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,657,000K ÷ $439,600K
= 8.32
The payables turnover ratio for Darden Restaurants Inc exhibits notable fluctuations over the specified periods. As of May 28, 2023, the ratio stood at 9.14, indicating that accounts payable were settled approximately 9.14 times within the period. By May 31, 2023, this ratio increased substantially to 19.72, suggesting a more rapid payment cycle or improved efficiency in settling obligations within that timeframe. Moving forward, the ratio decreased to 10.74 by May 26, 2024, reflecting a slowdown in the turnover of payables compared to the previous period. This downward trend continued, with the ratio further declining to 8.32 on May 31, 2025, indicating a lengthening of the accounts payable cycle or a potential shift in credit terms with suppliers.
Overall, the data reveals significant variability in the company's payables management. Higher ratios in early periods imply quicker payments, while the subsequent decline points to either extended payment periods, changes in payment policies, or modifications in supply chain dynamics. This fluctuation underscores the importance of analyzing underlying operational or strategic factors that could influence the company’s accounts payable practices.
Peer comparison
May 31, 2025