Darden Restaurants Inc (DRI)

Short-term

Turnover ratios

Based on the data provided, let's analyze the activity ratios of Darden Restaurants Inc:

1. Inventory Turnover: This ratio measures how efficiently Darden Restaurants Inc is managing its inventory. The company's inventory turnover has been relatively stable over the periods, ranging from 19.85 to 27.46. A higher inventory turnover indicates that Darden is selling its inventory more quickly, which could be a positive sign of efficient operations.

2. Receivables Turnover: This ratio reflects how quickly Darden is collecting payments from its customers. The data shows varying values, with some periods not having receivables turnover data available. The available values range from 134.56 to 198.24. A higher receivables turnover implies that Darden is efficiently collecting payments from customers.

3. Payables Turnover: Payables turnover measures how quickly Darden is paying its suppliers. The values provided range from 13.99 to 17.06, with some periods having no data available. A higher payables turnover may suggest that Darden is managing its payables effectively and possibly taking advantage of credit terms.

4. Working Capital Turnover: This ratio indicates how efficiently Darden is utilizing its working capital to generate sales revenue. The data shows no values available for this ratio across all periods, indicating that information regarding the turnover of working capital is not provided in the dataset.

Overall, the analysis of Darden Restaurants Inc's activity ratios suggests that the company is effectively managing its inventory, collecting payments from customers, and paying suppliers. However, further insight into working capital turnover would provide a more comprehensive evaluation of Darden's operational efficiency.

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Average number of days

Darden Restaurants Inc's activity ratios provide insights into the efficiency of the company's operations.

1. Days of Inventory on Hand (DOH): The DOH indicates the number of days it takes for the company to sell its inventory. Over the recorded periods, Darden's DOH ranged from 13.29 days to 18.39 days. The decreasing trend in recent periods suggests that the company is managing its inventory more efficiently, with lower levels of excess inventory.

2. Days of Sales Outstanding (DSO): DSO reflects how long it takes the company to collect payments from its customers. Darden had varying DSO figures, with some periods showing no data available. The DSO figures ranged from 1.84 days to 2.71 days when data was provided. The lower the DSO, the better, as it indicates faster cash collection from customers.

3. Number of Days of Payables: This ratio shows how long it takes the company to pay its suppliers. Darden's days of payables ranged from 21.39 days to 26.10 days, showing relatively stable payment practices. A longer period indicates that the company is taking more time to pay its suppliers, which can have cash flow benefits.

Overall, the trends in these activity ratios suggest that Darden Restaurants Inc is effectively managing its inventory, accounts receivable, and accounts payable to support its overall operational efficiency.

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Long-term

Darden Restaurants Inc's fixed asset turnover ratio fluctuated over the years, ranging from a low of 1.41 to a high of 3.89. This ratio indicates how efficiently the company is using its fixed assets to generate sales. A higher ratio suggests that the company is effectively utilizing its fixed assets to generate revenue.

On the other hand, Darden Restaurants Inc's total asset turnover ratio also varied, with values ranging from 0.86 to 1.08. This ratio reflects the company's ability to generate sales from its total assets. A higher total asset turnover ratio indicates that the company is generating more sales relative to its total assets.

Overall, the fixed asset turnover and total asset turnover ratios of Darden Restaurants Inc show some variability but generally demonstrate that the company is efficiently using its assets to generate revenue, although there may be some fluctuations in performance over time.