Darden Restaurants Inc (DRI)

Current ratio

		May 26, 2024	May 28, 2023	May 29, 2022	May 30, 2021	May 31, 2020
Total current assets	US$ in thousands	822,800	997,700	1,179,400	1,871,100	1,101,400
Total current liabilities	US$ in thousands	2,192,500	1,937,400	1,847,500	1,848,300	1,792,800
Current ratio		0.38	0.51	0.64	1.01	0.61

May 26, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $822,800K ÷ $2,192,500K
= 0.38

The current ratio of Darden Restaurants Inc has exhibited a declining trend over the past five years, indicating a weakening ability to meet its short-term obligations with current assets. As of May 26, 2024, the current ratio stands at 0.38, the lowest level in the period under review. This suggests that the company may potentially face liquidity challenges in meeting its current liabilities. It is important for stakeholders to closely monitor Darden's liquidity position and assess the company's ability to generate sufficient cash flows to support its operations and debt obligations.