Darden Restaurants Inc (DRI)
Cash ratio
| 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 | May 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 224,200 | 217,300 | 192,500 | 220,100 | 194,800 | 243,900 | 243,900 | 195,700 | 195,700 | 192,100 | 192,100 | 367,800 | 367,800 | 275,300 | 275,300 | 240,700 | 240,700 | 435,900 | 377,500 | 472,100 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,283,100 | 2,401,000 | 2,324,700 | 2,192,500 | 2,192,500 | 2,272,400 | 2,272,400 | 2,381,600 | 2,381,600 | 2,094,200 | 2,094,200 | 1,937,400 | 1,937,400 | 1,950,400 | 1,950,400 | 1,906,400 | 1,906,400 | 1,825,300 | 1,825,300 | 1,847,500 |
| Cash ratio | 0.10 | 0.09 | 0.08 | 0.10 | 0.09 | 0.11 | 0.11 | 0.08 | 0.08 | 0.09 | 0.09 | 0.19 | 0.19 | 0.14 | 0.14 | 0.13 | 0.13 | 0.24 | 0.21 | 0.26 |
February 28, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($224,200K
+ $—K)
÷ $2,283,100K
= 0.10
The cash ratio is a liquidity ratio that measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a better ability to cover short-term obligations.
For Darden Restaurants Inc, the cash ratio has exhibited some variability over the reported periods. The cash ratio fluctuated between 0.26 and 0.08 during the observed duration. The highest cash ratio of 0.26 was reported as of May 31, 2022, indicating that Darden had a substantial amount of cash and cash equivalents relative to its short-term liabilities at that point in time.
However, the cash ratio dropped to as low as 0.08 by November 26, 2023, and remained at similar levels in the subsequent periods. This decline suggests a potential reduction in Darden's ability to cover its short-term obligations solely with cash and cash equivalents.
Overall, the trend in Darden Restaurants Inc's cash ratio indicates some fluctuations with periods of stronger liquidity position followed by declines. It is essential for investors and analysts to consider the reasons behind these changes in the cash ratio to assess Darden's liquidity and financial health accurately.
Peer comparison
Feb 28, 2025