Darden Restaurants Inc (DRI)
Quick ratio
| May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | May 31, 2022 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 194,800 | 194,800 | 367,800 | 367,800 | 420,600 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | 79,100 | — | 80,200 | — |
| Total current liabilities | US$ in thousands | 2,192,500 | 2,192,500 | 1,937,400 | 1,937,400 | 1,847,500 |
| Quick ratio | 0.09 | 0.12 | 0.19 | 0.23 | 0.23 |
May 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($194,800K
+ $—K
+ $—K)
÷ $2,192,500K
= 0.09
The quick ratio of Darden Restaurants Inc has been showing a declining trend over the years. As of May 31, 2022 and May 28, 2023, the quick ratio remained stable at 0.23. However, there was a notable decrease to 0.19 on May 31, 2023, indicating a potential strain on the company's liquidity. This trend continued with a further decline to 0.12 on May 26, 2024, suggesting a heightened risk in meeting short-term obligations. By May 31, 2024, the quick ratio dropped even lower to 0.09, indicating that the company may be facing challenges in covering its current liabilities with its quick assets. It is essential for Darden Restaurants Inc to closely monitor and manage its liquidity position to ensure its ability to meet its short-term financial obligations promptly.
Peer comparison
May 31, 2024