Darden Restaurants Inc (DRI)

Total asset 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
Total assets	US$ in thousands	11,323,000	11,358,200	11,322,100	11,269,200	10,241,500	10,075,400	10,025,300	10,014,500	10,135,800	10,205,400	10,403,300	10,541,700	10,656,100	10,096,100	9,927,600	9,789,500	9,946,100	9,973,300	9,742,700	9,719,500
Total asset turnover		1.01	0.98	0.97	0.95	1.02	1.02	0.99	0.97	0.95	0.91	0.82	0.76	0.67	0.62	0.69	0.74	0.78	0.88	0.89	0.88

May 26, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $11,391,400K ÷ $11,323,000K
= 1.01

Total asset turnover is a key financial ratio that measures a company's ability to generate revenue from its assets. It indicates how efficiently a company is using its assets to generate sales. A higher total asset turnover ratio generally indicates better efficiency in asset utilization.

Analyzing the total asset turnover ratio for Darden Restaurants Inc over the past few quarters, we can see fluctuations in the ratio. The ratio ranged from 0.62 to 1.02 during the period under review.

In general, a total asset turnover ratio of 1.0 means that the company is able to generate $1 in sales for every $1 in assets. Therefore, a ratio above 1.0 indicates efficient asset utilization.

Darden Restaurants Inc's total asset turnover ratio has shown some variability, ranging from 0.62 to 1.02. The ratio was above 1.0 in several quarters, indicating relatively efficient use of assets to generate sales. However, there were also quarters where the ratio was below 1.0, indicating potential areas for improvement in asset utilization.

Overall, it is important for Darden Restaurants Inc to continue monitoring and improving its total asset turnover ratio to ensure efficient use of its assets in generating sales and maximizing profitability.