Darden Restaurants Inc (DRI)
Cash ratio
| May 26, 2024 | May 28, 2023 | May 29, 2022 | May 30, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 194,800 | 367,800 | 420,600 | 1,214,700 | 763,300 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,192,500 | 1,937,400 | 1,847,500 | 1,848,300 | 1,792,800 |
| Cash ratio | 0.09 | 0.19 | 0.23 | 0.66 | 0.43 |
May 26, 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 exhibited a declining trend over the past five years, dropping from 0.66 in May 2021 to 0.09 in May 2024. This indicates that the company's ability to cover its short-term liabilities with its available cash and cash equivalents has decreased significantly. A cash ratio of 0.09 in May 2024 suggests that for every dollar of current liabilities, the company only has $0.09 in cash and cash equivalents on hand, which raises concerns about its liquidity position. It's important for investors and stakeholders to closely monitor this ratio to ensure that the company can meet its short-term obligations and maintain financial stability.
Peer comparison
May 26, 2024