Darden Restaurants Inc (DRI)

Short-term

Turnover ratios

Darden Restaurants Inc has displayed consistent and efficient inventory management over the analyzed periods, with inventory turnover ratios ranging between 12.50 and 17.46 times. This indicates that the company has effectively turned over its inventory into sales during each period.

The receivables turnover ratios have also shown strong performance, fluctuating between 105.29 and 191.70 times. This suggests that Darden Restaurants has been successful in collecting payments from its customers in a timely manner.

In terms of payables turnover, the company's ratios have varied between 8.55 and 12.21 times. Darden Restaurants appears to manage its payables effectively, with a consistent turnover rate over the periods.

The working capital turnover ratio is not available for most periods, except for a significant value of 314.96 in February 2021. This indicates that Darden Restaurants efficiently utilized its working capital to generate sales during that specific period.

Overall, Darden Restaurants Inc's activity ratios reflect efficient management of inventory, receivables, payables, and working capital, highlighting the company's solid operational performance and financial health.

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Average number of days

Darden Restaurants Inc's activity ratios, as indicated by the days of inventory on hand (DOH), days of sales outstanding (DSO), and number of days of payables, provide insight into the efficiency of its operations.

1. Days of Inventory on Hand (DOH):
- The trend in DOH fluctuates over the periods analyzed, ranging from a low of 20.91 days to a high of 29.20 days.
- A lower DOH indicates that Darden Restaurants is efficiently managing its inventory and selling products quickly without holding excess stock.
- The average DOH over the periods indicates that Darden Restaurants typically holds inventory for approximately 26 days before it is sold.

2. Days of Sales Outstanding (DSO):
- Darden Restaurants' DSO also varies across the periods, with a range from 1.90 days to 3.47 days.
- A lower DSO suggests that the company is collecting receivables quickly, which is positive for its cash flow.
- On average, Darden Restaurants collects outstanding sales within approximately 2.5 days, indicating effective accounts receivable management.

3. Number of Days of Payables:
- The number of days of payables for Darden Restaurants ranges from 29.88 days to 42.69 days.
- Higher days of payables suggest that the company takes longer to pay its suppliers, which can be beneficial for cash flow management.
- On average, Darden Restaurants takes approximately 37 days to pay its suppliers.

Overall, the analysis of Darden Restaurants Inc's activity ratios reflects the company's efficiency in managing inventory, collecting receivables, and paying its suppliers within the analyzed periods.

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Long-term

Darden Restaurants Inc's long-term activity ratios provide insight into how efficiently the company is managing its assets to generate sales. The fixed asset turnover ratio, which measures the company's ability to generate sales from its fixed assets, fluctuated over the periods analyzed. The ratio ranged from 1.37 to 3.79, with an average of approximately 2.88. This indicates that Darden Restaurants is effectively utilizing its fixed assets to generate revenue, although there are some fluctuations in efficiency over time.

On the other hand, the total asset turnover ratio, which assesses the company's ability to generate sales from all assets, also exhibited variability across the periods. The ratio ranged from 0.62 to 1.02, with an average of about 0.87. This suggests that Darden Restaurants is turning over its total assets to generate revenue, although the efficiency varies over time.

Overall, the analysis of Darden Restaurants Inc's long-term activity ratios reveals that the company is effectively utilizing its assets to generate sales, but there are fluctuations in efficiency that may warrant further investigation to identify underlying trends or factors affecting performance.