Darden Restaurants Inc (DRI)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	1,053,800	1,038,500	1,136,300	1,242,000	1,146,000	1,050,000	931,600	813,200	916,200	1,019,200	1,111,300	1,203,400	1,075,500	947,600	854,000	760,400	854,900	949,400	1,003,400	1,057,400
Total assets	US$ in thousands	12,560,900	12,519,200	11,355,500	12,965,600	11,323,000	11,358,200	11,358,200	11,322,100	11,322,100	11,269,200	11,269,200	10,241,500	10,241,500	10,075,400	10,075,400	10,025,300	10,025,300	10,014,500	10,014,500	11,673,200
ROA		8.39%	8.30%	10.01%	9.58%	10.12%	9.24%	8.20%	7.18%	8.09%	9.04%	9.86%	11.75%	10.50%	9.41%	8.48%	7.58%	8.53%	9.48%	10.02%	9.06%

February 28, 2025 calculation

ROA = Net income (ttm) ÷ Total assets
= $1,053,800K ÷ $12,560,900K
= 8.39%

Return on assets (ROA) is a key financial ratio that measures a company's ability to generate profit from its total assets. The ROA of Darden Restaurants Inc fluctuated over the reported period, ranging from a low of 7.18% on November 30, 2023, to a high of 11.75% on May 31, 2023.

Overall, Darden Restaurants Inc's ROA has shown some variability, indicating fluctuations in the company's efficiency in utilizing its assets to generate profit. The average ROA over the period was approximately 9.21%. Notably, the ROA improved in the most recent period, increasing from 8.30% on November 30, 2024, to 8.39% on February 28, 2025.

In general, investors and analysts may consider a higher ROA favorable as it indicates that the company is more efficient in utilizing its assets to generate profits. However, it is essential to analyze ROA in conjunction with other financial metrics to gain a comprehensive understanding of Darden Restaurants Inc's overall financial performance.