Darden Restaurants Inc (DRI)
Cash ratio
| May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | May 31, 2022 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 194,800 | 194,800 | 367,800 | 367,800 | 420,600 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,192,500 | 2,192,500 | 1,937,400 | 1,937,400 | 1,847,500 |
| Cash ratio | 0.09 | 0.09 | 0.19 | 0.19 | 0.23 |
May 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($194,800K
+ $—K)
÷ $2,192,500K
= 0.09
The cash ratio of Darden Restaurants Inc has shown a declining trend over the period analyzed, decreasing from 0.23 as of May 31, 2022, to 0.09 as of May 31, 2024. This indicates that the company has a decreasing ability to cover its short-term liabilities with its available cash and cash equivalents. A lower cash ratio may suggest potential liquidity challenges in meeting its immediate financial obligations. It is crucial for Darden Restaurants Inc to closely monitor its cash position and work towards improving its liquidity to ensure financial stability in the future.
Peer comparison
May 31, 2024