Darden Restaurants Inc (DRI)
Return on total capital
| May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | May 31, 2022 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,315,300 | 1,314,200 | 1,205,600 | 1,169,100 | 1,166,700 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,242,500 | 2,242,500 | 2,201,500 | 2,201,500 | 2,198,200 |
| Return on total capital | 58.65% | 58.60% | 54.76% | 53.10% | 53.08% |
May 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,315,300K ÷ ($—K + $2,242,500K)
= 58.65%
Based on the provided data, the return on total capital for Darden Restaurants Inc has shown a consistent upward trend over the years. The ratio increased from 53.08% as of May 31, 2022, to 58.65% as of May 31, 2024. This indicates that the company has been effectively utilizing its total capital to generate returns for its shareholders and stakeholders. The consistent improvement in the return on total capital reflects the company's operational efficiency and profitability, demonstrating management's ability to generate value from the capital invested in the business. Overall, the increasing trend in the return on total capital is a positive sign of Darden Restaurants Inc's financial health and sustainable growth.
Peer comparison
May 31, 2024