Darden Restaurants Inc (DRI)

Receivables turnover

		May 26, 2024	Feb 25, 2024	Nov 26, 2023	Aug 27, 2023	May 28, 2023	Feb 26, 2023	Nov 27, 2022	Aug 28, 2022	May 29, 2022	Feb 27, 2022	Nov 28, 2021	Aug 29, 2021	May 30, 2021	Feb 28, 2021	Nov 29, 2020	Aug 30, 2020	May 31, 2020	Feb 23, 2020	Nov 24, 2019	Aug 25, 2019
Revenue (ttm)	US$ in thousands	11,391,400	11,166,700	10,977,000	10,747,000	10,461,500	10,281,300	9,947,700	9,719,100	9,585,300	9,266,800	8,561,900	7,960,300	7,181,100	6,215,800	6,813,900	7,198,000	7,797,500	8,756,500	8,659,800	8,582,100
Receivables	US$ in thousands	79,100	72,200	80,300	59,200	80,200	57,600	71,600	50,700	72,000	52,600	69,100	67,600	68,200	44,000	46,200	47,200	49,800	51,200	56,800	51,100
Receivables turnover		144.01	154.66	136.70	181.54	130.44	178.49	138.93	191.70	133.13	176.17	123.91	117.76	105.29	141.27	147.49	152.50	156.58	171.03	152.46	167.95

May 26, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $11,391,400K ÷ $79,100K
= 144.01

The receivables turnover ratio for Darden Restaurants Inc has exhibited significant fluctuations over the past several reporting periods. The ratio represents how efficiently the company collects outstanding receivables from its customers within a given time frame.

The trend in Darden's receivables turnover shows a mix of high and low values, indicating variability in the speed of collecting receivables. A higher receivables turnover ratio suggests that the company is collecting its receivables more frequently, reflecting a shorter time for customers to pay their outstanding balances.

The ratio values range from 105.29 to 191.70, demonstrating fluctuations in the efficiency of Darden's collections process. The highest turnover ratio of 191.70 occurred in August 2023, indicating a rapid collection of receivables during that period. Conversely, the lowest turnover ratio of 105.29 was reported in November 2021, suggesting a slower pace in collecting outstanding balances.

Overall, the analysis of Darden's receivables turnover indicates varying efficiency levels in collecting receivables over the observed reporting periods. An in-depth investigation into the factors influencing these fluctuations could provide insights into the company's credit policies, customer payment behavior, and overall financial health.