Darden Restaurants Inc (DRI)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,371,200 | 1,348,300 | 1,444,000 | 1,561,300 | 1,456,600 | 1,339,700 | 1,204,800 | 1,070,300 | 1,154,900 | 1,250,900 | 1,349,200 | 1,446,200 | 1,300,000 | 1,158,700 | 1,046,800 | 941,100 | 1,057,600 | 1,162,600 | 1,220,300 | 1,276,900 |
| Interest expense (ttm) | US$ in thousands | 35,400 | 70,800 | 107,300 | 143,800 | 145,900 | 148,000 | 141,200 | 134,400 | 115,100 | 78,100 | 68,000 | 60,700 | 62,200 | 64,200 | 64,400 | 61,800 | 91,900 | 108,300 | 106,000 | 103,700 |
| Interest coverage | 38.73 | 19.04 | 13.46 | 10.86 | 9.98 | 9.05 | 8.53 | 7.96 | 10.03 | 16.02 | 19.84 | 23.83 | 20.90 | 18.05 | 16.25 | 15.23 | 11.51 | 10.73 | 11.51 | 12.31 |
February 28, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,371,200K ÷ $35,400K
= 38.73
Based on the data provided, Darden Restaurants Inc's interest coverage ratio has exhibited fluctuations over the given period. The interest coverage ratio represents the company's ability to meet its interest payments on outstanding debt.
Starting from May 31, 2022, the interest coverage ratio stood at 12.31, indicating that the company earned 12.31 times the interest charges. The ratio decreased slightly in the following periods, reaching a low of 7.96 on November 30, 2023, reflecting a potential strain on its ability to cover interest expenses.
However, the interest coverage ratio improved in the subsequent periods, reaching a peak of 38.73 on February 28, 2025, signifying a robust ability to cover interest obligations. This increase could be attributed to various factors such as improved profitability or decreased interest expenses.
Overall, fluctuations in the interest coverage ratio might imply varying levels of financial risk for Darden Restaurants Inc. Monitoring this ratio over time can provide insights into the company's financial health and its ability to service its debt obligations efficiently.
Peer comparison
Feb 28, 2025