Darden Restaurants Inc (DRI)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 194,800 | 243,900 | 195,700 | 192,100 | 367,800 | 275,300 | 240,700 | 377,500 | 420,600 | 555,300 | 746,300 | 947,800 | 1,214,700 | 993,900 | 777,300 | 654,600 | 763,300 | 321,700 | 157,300 | 350,800 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | 1,000 | 6,500 | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 79,100 | 72,200 | 80,300 | 59,200 | 80,200 | 57,600 | 71,600 | 50,700 | 72,000 | 52,600 | 69,100 | 67,600 | 68,200 | 44,000 | 46,200 | 47,200 | 49,800 | 51,200 | 56,800 | 51,100 |
| 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 |
| Quick ratio | 0.12 | 0.14 | 0.12 | 0.12 | 0.23 | 0.17 | 0.16 | 0.23 | 0.27 | 0.33 | 0.46 | 0.60 | 0.69 | 0.63 | 0.53 | 0.45 | 0.45 | 0.22 | 0.14 | 0.26 |
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 shown fluctuation over the periods outlined in the table. The ratio, which measures the company's ability to meet its short-term obligations with its most liquid assets, indicates a trend of volatility.
Looking at the data, we see that the quick ratio has ranged from as low as 0.12 to as high as 0.69. The lower ratios suggest a potential risk for the company in meeting its short-term financial commitments, as it may have insufficient liquid assets to cover its current liabilities.
However, the higher ratios, particularly in the latter periods, signal an improvement in the company's liquidity position. A quick ratio above 1.0 is typically considered healthy, indicating that the company has an adequate level of liquid assets to cover its short-term liabilities.
Overall, based on the historical quick ratio data provided, Darden Restaurants Inc has demonstrated varying levels of liquidity over time, and it would be prudent to monitor future trends to assess the company's financial stability and ability to manage its short-term obligations effectively.
Peer comparison
May 26, 2024