Darden Restaurants Inc (DRI)

Payables 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
Payables	US$ in thousands	399,500	406,000	423,900	419,600	426,200	423,800	435,300	406,900	366,900	350,000	355,400	325,000	304,500	238,800	235,600	248,800	249,400	360,100	340,200	343,700
Payables turnover		10.74	10.39	9.79	9.65	9.14	9.02	8.55	8.97	9.84	9.92	9.06	9.25	9.32	10.04	11.33	11.57	12.21	9.89	10.32	10.11

May 26, 2024 calculation

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

The payables turnover ratio for Darden Restaurants Inc has been relatively stable over the past few quarters, ranging from 8.55 to 12.21 times. The ratio indicates that, on average, Darden pays off its suppliers approximately 9 to 12 times a year. A higher payables turnover ratio may suggest that the company is efficiently managing its accounts payable by paying suppliers more frequently. Conversely, a lower ratio may indicate that Darden is taking longer to pay its suppliers.

Overall, Darden's payables turnover ratio reflects a consistent pattern of managing its accounts payable effectively, ensuring timely payments to suppliers while also optimizing cash flow management. This steady performance in managing payables turnover demonstrates Darden's commitment to maintaining healthy supplier relationships and efficient working capital management.