Darden Restaurants Inc (DRI)

Quick 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
Cash	US$ in thousands	240,000	224,200	217,300	192,500	194,800	194,800	243,900	243,900	195,700	195,700	192,100	192,100	367,800	367,800	275,300	275,300	240,700	240,700	377,500	377,500
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	93,800	65,600	77,800	63,800	79,100	79,100	72,200	72,200	80,300	80,300	59,200	59,200	80,200	80,200	57,600	57,600	71,600	71,600	50,700	50,700
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
Quick ratio		0.15	0.13	0.12	0.11	0.12	0.12	0.14	0.14	0.12	0.12	0.12	0.12	0.23	0.23	0.17	0.17	0.16	0.16	0.23	0.23

May 31, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($240,000K + $—K + $93,800K) ÷ $2,247,500K
= 0.15

The quick ratio of Darden Restaurants Inc. over the analyzed period exhibits notable fluctuations with an overall declining trend. At the beginning of the period, on August 28 and 31, 2022, the ratio stood at 0.23, indicating that the company's liquid assets were able to cover approximately 23% of current liabilities. This ratio remained stable through November 27 and 30, 2022, with values of 0.16, reflecting a decrease in liquidity compared to the previous period. During the first half of 2023, the ratio showed slight variability, reaching 0.17 at the end of February 2023, and then rising back to 0.23 by late May 2023.

However, starting from August 2023, the ratio declined sharply to 0.12 and continued to trend downward, reaching as low as 0.11 by August 31, 2024. Short-term fluctuations occurred afterward, with minor increases to 0.14 in February 2024 and 0.15 in May 2025, each remaining below 0.2. The overall pattern indicates a consistent low liquidity position, with the quick ratio generally remaining below 0.2 throughout the period, signaling that liquid assets only marginally cover current liabilities.

This persistent low quick ratio suggests that Darden Restaurants Inc. may have limited liquid assets available to promptly satisfy short-term obligations, potentially indicating a vulnerability in liquidity management or a strategic reliance on other short-term financing sources. The gradual decline over time further emphasizes a narrowing margin to meet immediate liabilities solely with liquid assets, which could warrant closer attention from stakeholders concerning the company’s short-term financial resilience.