Darden Restaurants Inc (DRI)

Debt-to-capital ratio

		May 26, 2024	May 28, 2023	May 29, 2022	May 30, 2021	May 31, 2020
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
Debt-to-capital ratio		0.00	0.00	0.29	0.25	0.28

May 26, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $2,242,500K)
= 0.00

The debt-to-capital ratio of Darden Restaurants Inc has shown a fluctuating trend over the past five years. The ratio was 0.29 in May 2022, indicating that approximately 29% of the company's capital was financed through debt. This was a notable increase from the previous year when the ratio stood at 0.25. However, the ratio decreased to 0.28 in the following year, reflecting a slight improvement in the company's debt position.

Interestingly, in the most recent two years, the debt-to-capital ratio has been at 0.00, suggesting that Darden Restaurants Inc had either significantly reduced its debt levels or increased its capital base during these periods. This shift to a debt-free capital structure may indicate a strategic decision to lower financial risk and improve solvency.

Overall, the company's debt-to-capital ratio has demonstrated some variability in recent years, with a mix of both increases and decreases. Further analysis would be beneficial to understand the factors driving these changes and to evaluate the long-term implications for Darden Restaurants Inc's financial health and stability.