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.