Darden Restaurants Inc (DRI)

Receivables 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
Revenue (ttm)	US$ in thousands	12,076,700	11,762,300	11,563,100	11,647,900	11,865,700	11,635,700	11,404,200	11,160,000	10,915,700	10,957,400	10,964,200	11,019,800	11,074,400	10,791,900	10,555,100	10,215,000	9,874,900	9,991,300	10,047,900	10,050,700
Receivables	US$ in thousands	93,800	65,600	77,800	63,800	79,100	79,100	72,200	72,200	80,300	80,300	59,200	59,200	80,200	80,200	57,600	57,600	71,600	71,600	50,700	50,700
Receivables turnover		128.75	179.30	148.63	182.57	150.01	147.10	157.95	154.57	135.94	136.46	185.21	186.15	138.08	134.56	183.25	177.34	137.92	139.54	198.18	198.24

May 31, 2025 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $12,076,700K ÷ $93,800K
= 128.75

The receivables turnover ratio for Darden Restaurants Inc. over the analyzed periods exhibits notable fluctuations that reflect changes in the efficiency of collection practices and credit policies.

Initially, during late August 2022, the ratio was approximately 198.2, indicating a very high frequency of receivables being collected within a year, suggestive of effective credit management. Throughout late November 2022, the ratio declined significantly to approximately 138.0, marking a decrease of around 30%, which could imply a slowdown in collection efficiency or a deliberate extension of credit terms.

The ratio continued to fluctuate, reaching approximately 183.3 in late February 2023, before decreasing again to roughly 134.6 in late May 2023. Such oscillations suggest variability in receivables collection, possibly tied to seasonal operational factors or changes in customer credit policies.

In the subsequent period ending August 2023, the ratio recovered to around 186.1, close to the initial levels observed in August 2022, indicating improved or stabilized collection cycles. However, a subsequent decline is seen in late November 2023 to approximately 136.5, followed by a slight modest recovery in early 2024 to about 155.0.

In the most recent periods, the ratios show some stabilization with figures of approximately 179.3 in February 2025 and a decline to about 128.8 in May 2025. The variation in these ratios, ranging roughly between 128 and 198, reflects ongoing adjustments in receivables management, possibly in response to market conditions, operational strategies, or changes in credit policies.

Overall, the receivables turnover ratio demonstrates periods of heightened efficiency interspersed with phases of slower collection, indicating a dynamic credit environment. The high ratios at certain points suggest effective receivables management during those periods, while the dips could reflect strategic credit extensions or operational challenges. Continued monitoring of these fluctuations can provide insights into the company's credit collection effectiveness and operational risk profile.