Darden Restaurants Inc (DRI)

Total asset 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
Total assets US$ in thousands 12,587,000 12,560,900 12,519,200 11,355,500 11,323,000 11,323,000 11,358,200 11,358,200 11,322,100 11,322,100 11,269,200 11,269,200 10,241,500 10,241,500 10,075,400 10,075,400 10,025,300 10,025,300 10,014,500 10,014,500
Total asset turnover 0.96 0.94 0.92 1.03 1.05 1.03 1.00 0.98 0.96 0.97 0.97 0.98 1.08 1.05 1.05 1.01 0.98 1.00 1.00 1.00

May 31, 2025 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $12,076,700K ÷ $12,587,000K
= 0.96

The total asset turnover ratio of Darden Restaurants Inc. exhibits notable fluctuations over the analyzed period from August 2022 to May 2025. Initially, the ratio remained stable at 1.00 through August and November 2022, indicating that the company's net sales approximately equal its average total assets during this period.

In late 2022, a slight decline was observed, with the ratio decreasing to 0.98 by November 30, 2022. This marginal reduction suggests a minor decrease in sales relative to the assets employed, potentially reflecting period-specific operational factors or seasonal variations.

Moving into early 2023, the ratio recovered and increased to 1.01 by February 26, 2023, and further to 1.05 by late February and May 2023, reflecting an increase in sales efficiency relative to total assets. The upward trend indicates that Darden was generating slightly more sales per dollar of assets during this period, possibly due to improved operational effectiveness or strategic initiatives.

However, in the subsequent months, a decline reemerged, with the ratio dipping below 1.00, reaching 0.98 in August 2023, and further declining to approximately 0.97 by late 2023. This downward movement may signify a temporary reduction in asset utilization efficiency or increased asset base without a proportionate increase in sales.

Looking forward into 2024 and 2025, the ratio exhibits some recovery and stability around the 1.00 mark, reaching 1.03 in May 2024 and fluctuating between 0.92 and 1.05 thereafter. The ratio generally oscillates near unity, indicating that sales are roughly proportional to total assets over this period, with minor deviations possibly due to operational variations or strategic changes.

Overall, the data indicates that Darden Restaurants Inc. maintained a relatively stable total asset turnover ratio around 1.00 throughout the analyzed timeframe, with periodic fluctuations reflecting operational and market dynamics. The ratio's mild oscillations suggest consistent efficiency in asset utilization in generating sales, though occasional declines could warrant further investigation into asset management strategies or external factors influencing sales performance.