Darden Restaurants Inc (DRI)

Current ratio

		May 31, 2025	May 31, 2024	May 26, 2024	May 31, 2023	May 28, 2023
Total current assets	US$ in thousands	937,700	822,800	822,800	997,700	997,700
Total current liabilities	US$ in thousands	2,247,500	2,192,500	2,192,500	1,937,400	1,937,400
Current ratio		0.42	0.38	0.38	0.51	0.51

May 31, 2025 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $937,700K ÷ $2,247,500K
= 0.42

The current ratio of Darden Restaurants Inc. has experienced fluctuations over the period under review. As of May 28, 2023, and May 31, 2023, the current ratio was recorded at 0.51, indicating that current assets were approximately half of current liabilities at that time. This ratio remained consistent through the same period, suggesting stability in short-term liquidity.

Moving forward to May 26, 2024, and May 31, 2024, the current ratio declined to 0.38. This decrease signals a further reduction in the company's ability to meet its short-term obligations solely through its current assets, implying potential tightening of liquidity conditions compared to the previous year.

By May 31, 2025, the current ratio slightly improved to 0.42. Despite this modest increase, the ratio remains below 0.50, indicating that current assets still do not sufficiently cover current liabilities in a one-to-one comparison. This persistent liquidity position suggests that Darden Restaurants Inc. may continue to operate with a relatively strained short-term liquidity profile, which warrants consideration of the company's cash flow management and working capital strategies.

In summary, the company's current ratio shows a pattern of decline from the high point of 0.51 in 2023 to a low of 0.38 in 2024, followed by a slight recovery to 0.42 in 2025. These figures reflect a consistent liquidity position below the generally accepted benchmark of 1.0, indicating the need for ongoing analysis of liquidity management and potential risks associated with short-term obligations.