Darden Restaurants Inc (DRI)

Debt-to-equity 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-equity ratio		0.00	0.00	0.41	0.33	0.40

May 26, 2024 calculation

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

The debt-to-equity ratio of Darden Restaurants Inc has shown a decreasing trend over the past five years. In the most recent fiscal year, ending on May 26, 2024, the company reported a debt-to-equity ratio of 0.00, indicating that its total debt was equal to zero relative to its equity. This implies that the company relied more on its equity financing rather than debt to fund its operations and investments.

Comparing this to the previous years, Darden Restaurants Inc had maintained a consistent low debt-to-equity ratio, with readings of 0.00 in May 28, 2023, 0.33 in May 30, 2021, and 0.40 in May 31, 2020. However, there was a significant spike in the debt-to-equity ratio to 0.41 in May 29, 2022, which might indicate a temporary increase in the company's reliance on debt financing in that particular fiscal year.

Overall, the decreasing trend in the debt-to-equity ratio signifies a more conservative approach to capital structure by Darden Restaurants Inc, with a lower level of financial leverage and potentially less financial risk. It suggests a prudent management strategy to maintain a strong financial position by minimizing the company's debt obligations relative to its equity.