Darden Restaurants Inc (DRI)

Current ratio

		May 26, 2024	Feb 25, 2024	Nov 26, 2023	Aug 27, 2023	May 28, 2023	Feb 26, 2023	Nov 27, 2022	Aug 28, 2022	May 29, 2022	Feb 27, 2022	Nov 28, 2021	Aug 29, 2021	May 30, 2021	Feb 28, 2021	Nov 29, 2020	Aug 30, 2020	May 31, 2020	Feb 23, 2020	Nov 24, 2019	Aug 25, 2019
Total current assets	US$ in thousands	822,800	876,400	867,700	835,700	997,700	890,900	892,100	941,000	1,179,400	1,280,100	1,514,200	1,658,000	1,871,100	1,300,400	1,109,700	971,000	1,101,400	686,000	535,500	670,300
Total current liabilities	US$ in thousands	2,192,500	2,272,400	2,381,600	2,094,200	1,937,400	1,950,400	1,906,400	1,825,300	1,847,500	1,815,900	1,780,700	1,715,000	1,848,300	1,646,500	1,546,100	1,543,900	1,792,800	1,683,100	1,557,500	1,548,600
Current ratio		0.38	0.39	0.36	0.40	0.51	0.46	0.47	0.52	0.64	0.70	0.85	0.97	1.01	0.79	0.72	0.63	0.61	0.41	0.34	0.43

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 fluctuated over the past few quarters, ranging from a low of 0.34 to a high of 1.01. The current ratio measures the company's ability to cover its short-term liabilities with its current assets.

A current ratio below 1 indicates that the company may have difficulty meeting its short-term obligations. Darden Restaurants Inc's current ratio has been consistently below 1 in recent quarters, suggesting potential liquidity challenges. It hit its lowest point at 0.34 in November 2019, which could have raised concerns about the company's short-term financial health.

Although there has been some improvement in the current ratio in more recent quarters, such as reaching 0.97 in August 2021 and 1.01 in May 2021, the ratio has remained below industry norms. It is important for investors and analysts to closely monitor Darden Restaurants Inc's current ratio to assess its liquidity position and ability to meet its short-term financial obligations.