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.