Darden Restaurants Inc (DRI)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	1,314,200	1,293,300	1,255,800	1,210,500	1,201,800	1,165,500	1,116,400	1,125,800	1,162,200	1,147,400	994,600	872,700	648,700	-266,800	-136,500	-97,000	47,900	869,800	857,000	844,900
Interest expense (ttm)	US$ in thousands	139,100	104,200	90,100	55,100	45,200	63,600	58,700	72,900	68,700	66,900	64,600	62,500	63,500	84,200	73,200	62,600	49,300	23,400	31,600	40,400
Interest coverage		9.45	12.41	13.94	21.97	26.59	18.33	19.02	15.44	16.92	17.15	15.40	13.96	10.22	-3.17	-1.86	-1.55	0.97	37.17	27.12	20.91

May 26, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,314,200K ÷ $139,100K
= 9.45

The interest coverage ratio for Darden Restaurants Inc has shown fluctuations over the past few quarters. The ratio measures the company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.

Looking at the historical data, we see that the interest coverage ratio has generally been healthy, averaging around 15 to 20, indicating a strong ability to cover interest payments. However, there are a few concerning quarters where the interest coverage ratio fell below 1, indicating that the company's operating income was insufficient to cover its interest expenses during those periods.

It is important for investors and stakeholders to closely monitor the interest coverage ratio of Darden Restaurants Inc to ensure that the company's earnings remain sufficient to cover its interest payments and to assess the company's overall financial health and ability to service its debt obligations.