Darden Restaurants Inc (DRI)

Financial leverage ratio

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 May 31, 2022
Total assets US$ in thousands 12,560,900 12,519,200 11,355,500 12,965,600 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 11,673,200
Total stockholders’ equity US$ in thousands 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 2,198,200
Financial leverage ratio 5.70 6.05 5.30 5.78 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 5.31

February 28, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $12,560,900K ÷ $2,203,000K
= 5.70

The financial leverage ratio of Darden Restaurants Inc fluctuated over the period from May 31, 2022, to February 28, 2025. The ratio ranged from a low of 4.65 to a high of 6.05, with the latest reported ratio being 5.70 as of February 28, 2025. This indicates that the company's reliance on debt to finance its operations and growth has varied over time. A higher financial leverage ratio suggests a higher level of debt in relation to equity, which can increase financial risk but also potentially amplify returns for shareholders. Conversely, a lower ratio signifies a lower level of debt relative to equity, indicating a more conservative capital structure. It is essential for investors and analysts to monitor changes in the financial leverage ratio to assess the company's risk profile and financial stability.