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.