Darden Restaurants Inc (DRI)
Financial leverage ratio
| May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | May 31, 2022 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 11,323,000 | 11,323,000 | 10,241,500 | 10,241,500 | 10,135,800 |
| Total stockholders’ equity | US$ in thousands | 2,242,500 | 2,242,500 | 2,201,500 | 2,201,500 | 2,198,200 |
| Financial leverage ratio | 5.05 | 5.05 | 4.65 | 4.65 | 4.61 |
May 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $11,323,000K ÷ $2,242,500K
= 5.05
The financial leverage ratio of Darden Restaurants Inc has been gradually increasing over the years, from 4.61 on May 31, 2022, to 5.05 on both May 26, 2024, and May 31, 2024. This indicates that the company is relying more on debt to finance its operations and investments compared to its equity. A higher financial leverage ratio can magnify returns on equity when company profits are increasing but can also increase financial risk in case of downturns. It is essential for investors and creditors to closely monitor this trend and assess Darden's ability to meet its debt obligations and manage its leverage effectively.
Peer comparison
May 31, 2024