Darden Restaurants Inc (DRI)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	1,314,200	1,293,300	1,255,800	1,210,500	1,201,800	1,165,500	1,116,400	1,125,800	1,162,200	1,147,400	994,600	872,700	648,700	-266,800	-136,500	-97,000	47,900	869,800	857,000	844,900
Total assets	US$ in thousands	11,323,000	11,358,200	11,322,100	11,269,200	10,241,500	10,075,400	10,025,300	10,014,500	10,135,800	10,205,400	10,403,300	10,541,700	10,656,100	10,096,100	9,927,600	9,789,500	9,946,100	9,973,300	9,742,700	9,719,500
Operating ROA		11.61%	11.39%	11.09%	10.74%	11.73%	11.57%	11.14%	11.24%	11.47%	11.24%	9.56%	8.28%	6.09%	-2.64%	-1.37%	-0.99%	0.48%	8.72%	8.80%	8.69%

May 26, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $1,314,200K ÷ $11,323,000K
= 11.61%

Darden Restaurants Inc's operating return on assets (operating ROA) has displayed a fluctuating trend over the past several quarters. The ratio has generally been positive, indicating that the company has been generating operating income from its assets.

The operating ROA was above 10% for most of the recent quarters, reaching its peak at 11.73% in May 2023. This suggests that the company was effectively utilizing its assets to generate operating profits during that period. However, there were also some quarters where the operating ROA dropped below 10%, indicating potential inefficiencies in asset utilization.

Notably, there was a significant decline in the operating ROA in the last few quarters, dropping to negative levels in May 2021 and February 2021. This may raise concerns about the company's ability to generate operating income relative to its asset base during those periods.

Overall, a sustained focus on improving operational efficiency and asset utilization may help Darden Restaurants Inc enhance its operating return on assets in the future and drive profitability.