Darden Restaurants Inc (DRI)
Quick ratio
| 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 | May 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 224,200 | 217,300 | 192,500 | 220,100 | 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 | 435,900 | 377,500 | 472,100 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | 79,100 | — | 72,200 | — | 80,300 | — | 59,200 | — | 80,200 | — | 57,600 | — | 71,600 | — | 50,700 | — |
| Total current liabilities | US$ in thousands | 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 | 1,847,500 |
| Quick ratio | 0.10 | 0.09 | 0.08 | 0.10 | 0.12 | 0.11 | 0.14 | 0.08 | 0.12 | 0.09 | 0.12 | 0.19 | 0.23 | 0.14 | 0.17 | 0.13 | 0.16 | 0.24 | 0.23 | 0.26 |
February 28, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($224,200K
+ $—K
+ $—K)
÷ $2,283,100K
= 0.10
The quick ratio of Darden Restaurants Inc has shown a declining trend over the past few quarters. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. As of February 28, 2025, the quick ratio stands at 0.10, indicating that for every dollar of current liabilities, Darden Restaurants Inc has $0.10 of highly liquid assets available to cover those obligations.
The decreasing trend in the quick ratio from 0.26 on May 31, 2022, to 0.10 on February 28, 2025, raises concerns about the company's liquidity position. A quick ratio below 1 suggests that the company may have difficulty meeting its short-term obligations without relying on the sale of inventory or other assets.
It is important for stakeholders to closely monitor this ratio and assess the company's ability to manage its short-term financial obligations effectively. Further analysis of Darden Restaurants Inc's cash flow and working capital management may provide additional insights into the reasons behind the declining quick ratio and the company's overall liquidity health.
Peer comparison
Feb 28, 2025