Darden Restaurants Inc (DRI)
Payables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 6,409,000 | 7,725,700 | 7,886,400 | 7,938,300 | 6,821,100 | 6,697,600 | 6,615,900 | 6,459,600 | 6,450,100 | 6,439,500 | 6,447,900 | 6,476,500 | 6,419,900 | 6,297,200 | 6,186,200 | 6,073,000 | 5,974,500 | 5,995,200 | 6,035,300 | 5,894,100 |
| Payables | US$ in thousands | 439,600 | 417,200 | 408,500 | 401,000 | 399,500 | 399,500 | 406,000 | 406,000 | 423,900 | 423,900 | 419,600 | 419,600 | 426,200 | 426,200 | 423,800 | 423,800 | 435,300 | 435,300 | 406,900 | 406,900 |
| 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 |
May 31, 2025 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $6,409,000K ÷ $439,600K
= 14.58
The payables turnover ratio for Darden Restaurants Inc. exhibits a general upward trend over the analyzed period from August 2022 through May 2025. Starting at approximately 14.49 times in late August 2022, the ratio fluctuated slightly but demonstrated a gradual increase, reaching around 17.07 times by May 2024. Notably, there is a significant rise in the ratio during the fiscal year 2024, culminating at approximately 19.80 times in August 2024, indicating that the company has been paying its suppliers more frequently or efficiently relative to its average accounts payable balance.
Following this peak, a modest decline is observed in late 2024, with the ratio settling at around 19.31 times in November 2024 and decreasing further to approximately 18.52 times by February 2025. A notable dip occurs in May 2025, where the ratio drops sharply to approximately 14.58 times.
Overall, the increase in payables turnover over the initial period suggests an improved efficiency or liquidity position, enabling Darden to settle its payables more frequently relative to its receivables or inventory levels. The subsequent decline towards the end of the period may indicate a strategic change, such as lengthening payment terms, temporary cash flow adjustments, or operational considerations that have influenced the timing of payments to suppliers. The wide fluctuations and the recent decrease in the ratio highlight variability in the company's payment practices or supplier terms over the year.
Peer comparison
May 31, 2025