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.