Darden Restaurants Inc (DRI)
Debt-to-capital ratio
| May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | May 31, 2022 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
May 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $2,242,500K)
= 0.00
Based on the data provided for Darden Restaurants Inc's debt-to-capital ratio, it appears that the company has consistently maintained a debt-to-capital ratio of 0.00 over the past five years, including as of May 31, 2024. A debt-to-capital ratio of 0.00 indicates that the company has no debt in its capital structure and is entirely financed by equity.
This could imply that Darden Restaurants Inc has chosen to fund its operations and investments primarily through equity financing, rather than taking on debt. A debt-to-capital ratio of 0.00 is generally considered a positive sign as it suggests a lower financial risk and greater financial stability for the company.
However, it is important to note that while a low debt-to-capital ratio indicates a conservative financial structure, it may also indicate missed opportunities for leveraging debt to potentially enhance returns for shareholders. Therefore, further analysis of other financial ratios and metrics, as well as qualitative factors, would be necessary to gain a comprehensive understanding of Darden Restaurants Inc's overall financial health and performance.
Peer comparison
May 31, 2024