Darden Restaurants Inc (DRI)

Current 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
Total current assets	US$ in thousands	937,700	880,600	879,600	819,600	822,800	822,800	876,400	876,400	867,700	867,700	835,700	835,700	997,700	997,700	890,900	890,900	892,100	892,100	941,000	941,000
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
Current ratio		0.42	0.39	0.37	0.35	0.38	0.38	0.39	0.39	0.36	0.36	0.40	0.40	0.51	0.51	0.46	0.46	0.47	0.47	0.52	0.52

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 exhibited a declining trend over the analyzed period from August 2022 through May 2025. Initially, during August 2022 and August 2022, the ratio stood at approximately 0.52, indicating that current assets slightly exceeded current liabilities. However, subsequent observations show a gradual decrease. By November 2022, the ratio had declined to 0.47, and further slight reduction was observed through early 2023, reaching approximately 0.46 in February 2023.

Throughout early to mid-2023, the current ratio stabilized around 0.51, suggesting a modest improvement or stability in liquidity position during this interval. Nevertheless, from late August 2023 onward, the ratio demonstrated a more persistent decline, dropping to 0.40 by the end of August 2023. This downward trajectory continued into late 2023 and early 2024, with the ratio declining further to approximately 0.36–0.39. Notably, by November 2023, the ratio reached its lowest point at 0.36, indicating that current liabilities significantly outstripped current assets at that time.

In 2024, a slight upward movement is observed, with the ratio rising to 0.42 by May 2024, and maintaining a modest increase to 0.39–0.42 through early 2025. Nonetheless, the ratio remains below the 0.5 threshold, indicating ongoing liquidity constraints relative to current liabilities. Overall, the trend underscores a consistent decline in the company's liquidity position, reflecting reduced current assets relative to current liabilities over the period analyzed. The ratios predominantly hover below 0.5, suggesting potential challenges in covering short-term obligations solely with current assets and raising considerations regarding the firm's short-term financial health.