Darden Restaurants Inc (DRI)
Financial leverage ratio
May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | May 26, 2024 | Feb 29, 2024 | Feb 25, 2024 | Nov 30, 2023 | Nov 26, 2023 | Aug 31, 2023 | Aug 27, 2023 | May 31, 2023 | May 28, 2023 | Feb 28, 2023 | Feb 26, 2023 | Nov 30, 2022 | Nov 27, 2022 | Aug 31, 2022 | Aug 28, 2022 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Total assets | US$ in thousands | 12,587,000 | 12,560,900 | 12,519,200 | 11,355,500 | 11,323,000 | 11,323,000 | 11,358,200 | 11,358,200 | 11,322,100 | 11,322,100 | 11,269,200 | 11,269,200 | 10,241,500 | 10,241,500 | 10,075,400 | 10,075,400 | 10,025,300 | 10,025,300 | 10,014,500 | 10,014,500 |
Total stockholders’ equity | US$ in thousands | 2,311,300 | 2,203,000 | 2,070,900 | 2,143,700 | 2,242,500 | 2,242,500 | 2,180,900 | 2,180,900 | 2,039,700 | 2,039,700 | 2,148,000 | 2,148,000 | 2,201,500 | 2,201,500 | 2,043,900 | 2,043,900 | 2,020,900 | 2,020,900 | 2,064,100 | 2,064,100 |
Financial leverage ratio | 5.45 | 5.70 | 6.05 | 5.30 | 5.05 | 5.05 | 5.21 | 5.21 | 5.55 | 5.55 | 5.25 | 5.25 | 4.65 | 4.65 | 4.93 | 4.93 | 4.96 | 4.96 | 4.85 | 4.85 |
May 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $12,587,000K ÷ $2,311,300K
= 5.45
The financial leverage ratio of Darden Restaurants Inc exhibits a trend characterized by fluctuations over the analyzed period. Initially, the ratio remained stable at approximately 4.85 from August 2022 through August 2022, signifying a relatively moderate level of leverage during this period. Subsequently, there was an increase to around 4.96 by November 2022, indicating a slight rise in leverage.
The ratio experienced minor adjustments in early 2023, with a slight decrease to approximately 4.93 by February 2023, before declining further to about 4.65 by May 2023. This suggests a reduction in leverage during this interval. However, a notable upward movement began in late August 2023, where the ratio increased to approximately 5.25, continuing to rise to 5.55 by November 2023. This upward trend reflects an increase in the company's leverage position, potentially indicating higher reliance on debt financing.
Following this peak, the ratio shows a gradual decline, moving to approximately 5.21 in February 2024 and further decreasing to 5.05 by May 2024. Nevertheless, the ratio rises again in the latter part of the period, reaching approximately 5.30 in August 2024. The trend then continues upward, reaching 6.05 by November 2024, the highest point in the observed timeframe. This increase signifies a continued elevation in leverage, possibly reflecting strategic or operational shifts that necessitate increased debt levels.
Looking ahead, the ratio is projected to decline slightly to around 5.70 in February 2025 and then to approximately 5.45 in May 2025. Despite these declines, the ratio remains elevated compared to initial levels observed in late 2022. Overall, the data depicts a pattern of increasing financial leverage over the analyzed period, with some short-term fluctuations, culminating in a substantially higher leverage ratio towards the end of the period. This trend may indicate greater financial risk but could also reflect strategic capital structure adjustments by the company.
Peer comparison
May 31, 2025