Darden Restaurants Inc (DRI)
Financial leverage ratio
| May 26, 2024 | Feb 25, 2024 | Nov 26, 2023 | Aug 27, 2023 | May 28, 2023 | Feb 26, 2023 | Nov 27, 2022 | Aug 28, 2022 | May 29, 2022 | Feb 27, 2022 | Nov 28, 2021 | Aug 29, 2021 | May 30, 2021 | Feb 28, 2021 | Nov 29, 2020 | Aug 30, 2020 | May 31, 2020 | Feb 23, 2020 | Nov 24, 2019 | Aug 25, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 11,323,000 | 11,358,200 | 11,322,100 | 11,269,200 | 10,241,500 | 10,075,400 | 10,025,300 | 10,014,500 | 10,135,800 | 10,205,400 | 10,403,300 | 10,541,700 | 10,656,100 | 10,096,100 | 9,927,600 | 9,789,500 | 9,946,100 | 9,973,300 | 9,742,700 | 9,719,500 |
| Total stockholders’ equity | US$ in thousands | 2,242,500 | 2,180,900 | 2,039,700 | 2,148,000 | 2,201,500 | 2,043,900 | 2,020,900 | 2,064,100 | 2,198,200 | 2,285,800 | 2,543,000 | 2,752,400 | 2,813,100 | 2,575,500 | 2,455,100 | 2,375,000 | 2,331,200 | 2,341,200 | 2,273,700 | 2,381,300 |
| Financial leverage ratio | 5.05 | 5.21 | 5.55 | 5.25 | 4.65 | 4.93 | 4.96 | 4.85 | 4.61 | 4.46 | 4.09 | 3.83 | 3.79 | 3.92 | 4.04 | 4.12 | 4.27 | 4.26 | 4.28 | 4.08 |
May 26, 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 shown a fluctuating trend over the past several quarters. The ratio, which measures the company's use of debt to finance its assets, has ranged between 3.79 and 5.55 during the period under review.
The company's financial leverage ratio peaked at 5.55 in November 2023, indicating a relatively high level of debt in its capital structure compared to equity. Subsequently, the ratio decreased to 4.09 in November 2021 but started to rise again, reaching 5.05 in May 2024.
Overall, the trend suggests that Darden Restaurants Inc has been gradually increasing its reliance on debt financing, as evidenced by the upward trajectory of the financial leverage ratio. This could potentially expose the company to higher financial risk, especially in times of economic uncertainty or rising interest rates.
It is important for stakeholders to monitor the company's financial leverage ratio closely to assess its ability to meet debt obligations and sustain profitability in the long term.
Peer comparison
May 26, 2024