Darden Restaurants Inc (DRI)
Quick ratio
| May 26, 2024 | May 28, 2023 | May 29, 2022 | May 30, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 194,800 | 367,800 | 420,600 | 1,214,700 | 763,300 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 79,100 | 80,200 | 72,000 | 68,200 | 49,800 |
| Total current liabilities | US$ in thousands | 2,192,500 | 1,937,400 | 1,847,500 | 1,848,300 | 1,792,800 |
| Quick ratio | 0.12 | 0.23 | 0.27 | 0.69 | 0.45 |
May 26, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($194,800K
+ $—K
+ $79,100K)
÷ $2,192,500K
= 0.12
The quick ratio of Darden Restaurants Inc has exhibited a declining trend over the past five years, decreasing from 0.45 in May 2020 to 0.12 in May 2024. This indicates a weakening liquidity position, as the company's ability to meet its short-term obligations with its most liquid assets has diminished.
A quick ratio below 1.0 suggests that the company may have difficulty covering its short-term liabilities with its current assets. The significant drop in the quick ratio from 0.69 in May 2021 to 0.12 in May 2024 raises concerns about the company's short-term financial stability.
It is essential for Darden Restaurants Inc to closely monitor its liquidity position and take necessary steps to improve its quick ratio to ensure it can efficiently meet its short-term financial obligations in the future.
Peer comparison
May 26, 2024