Darden Restaurants Inc (DRI)
Return on total capital
| May 26, 2024 | May 28, 2023 | May 29, 2022 | May 30, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,314,200 | 1,169,100 | 1,132,500 | 620,900 | -114,900 |
| Long-term debt | US$ in thousands | — | — | 901,000 | 929,800 | 928,800 |
| Total stockholders’ equity | US$ in thousands | 2,242,500 | 2,201,500 | 2,198,200 | 2,813,100 | 2,331,200 |
| Return on total capital | 58.60% | 53.10% | 36.54% | 16.59% | -3.52% |
May 26, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,314,200K ÷ ($—K + $2,242,500K)
= 58.60%
The Return on Total Capital for Darden Restaurants Inc has shown a positive trend over the past five years, indicating an improvement in the company's ability to generate profits relative to its total capital employed. The ratio increased from -3.52% in May 2020 to 58.60% in May 2024, demonstrating a significant turnaround and a strong performance. This upward trajectory suggests that Darden Restaurants has been effectively utilizing its capital to generate returns for its shareholders and stakeholders. The consistent improvement in this ratio reflects the company's efficient management of its financial resources and a strong operational performance, contributing to the overall financial health and profitability of Darden Restaurants Inc.
Peer comparison
May 26, 2024