Darden Restaurants Inc (DRI)

Receivables turnover

		May 26, 2024	May 28, 2023	May 29, 2022	May 30, 2021	May 31, 2020
Revenue	US$ in thousands	11,391,500	10,461,500	9,585,300	7,181,100	7,748,300
Receivables	US$ in thousands	79,100	80,200	72,000	68,200	49,800
Receivables turnover		144.01	130.44	133.13	105.29	155.59

May 26, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $11,391,500K ÷ $79,100K
= 144.01

The receivables turnover ratio for Darden Restaurants Inc has fluctuated over the past five years, ranging from a low of 105.29 in 2021 to a high of 155.59 in 2020. This ratio indicates the efficiency of the company in collecting its accounts receivable during a specific period.

A higher receivables turnover ratio suggests that the company is more effective in collecting payments from its customers, which is generally viewed favorably as it indicates good liquidity and efficient credit management. On the other hand, a lower ratio may signify potential issues with collecting receivables in a timely manner.

Overall, the significant variability in Darden Restaurants Inc's receivables turnover ratio over the years implies fluctuations in its accounts receivable management efficiency, which could be influenced by factors such as changes in customer payment behaviors, credit policies, or external economic conditions. Further analysis would be needed to determine the specific reasons behind the fluctuations and their impact on the company's financial performance.