Darden Restaurants Inc (DRI)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 240,000 | 224,200 | 217,300 | 192,500 | 194,800 | 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 | 377,500 | 377,500 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,247,500 | 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 |
| Cash ratio | 0.11 | 0.10 | 0.09 | 0.08 | 0.09 | 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 | 0.21 | 0.21 |
May 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($240,000K
+ $—K)
÷ $2,247,500K
= 0.11
The cash ratio of Darden Restaurants Inc. over the analyzed period exhibits notable fluctuations, reflecting varying levels of liquidity in terms of cash and cash equivalents relative to current liabilities. Initially, the cash ratio remained relatively stable at 0.21 in August 2022 but declined to 0.13 by the end of November 2022, indicating a reduction in cash holdings compared to current liabilities. From late 2022 through early 2023, the ratio experienced slight increases, reaching 0.19 in May 2023, suggesting a modest improvement in liquidity position. However, a downward trend ensued, with the ratio dropping to 0.09 by August 2023, signifying a decreased capacity to cover current liabilities with cash on hand.
This declining pattern persisted into late 2023 and early 2024, with the ratio hovering around 0.08 to 0.11, indicating persistently low levels of cash relative to current liabilities. The lowest points were observed around November 2023, where the ratio fell to 0.08, emphasizing limited liquidity in terms of immediate cash resources. Towards the end of the data, the ratio showed marginal improvement, rising slightly to 0.11 in February 2024 and then stabilizing around 0.09 to 0.11 into mid-2025.
Overall, the trend indicates that Darden Restaurants Inc. has maintained a relatively low and fluctuating cash ratio throughout the period, generally below 0.20, suggesting a consistent reliance on other liquidity or working capital components beyond cash to meet short-term obligations. The declining trajectory over time could imply a strategic shift towards utilizing cash for operational needs, investing activities, or other financial activities, or it may reflect challenges in maintaining high liquidity levels. The relatively low and stable cash ratio highlights the company's dependence on broader current assets rather than cash alone to support its short-term financial health.
Peer comparison
May 31, 2025