Darden Restaurants Inc (DRI)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.10 | 0.10 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.30 | 0.30 | 0.30 | 0.29 | 0.29 | 0.27 | 0.25 | 0.25 | 0.27 | 0.27 | 0.28 | 0.28 | 0.28 | 0.29 | 0.28 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.43 | 0.44 | 0.43 | 0.41 | 0.40 | 0.37 | 0.34 | 0.33 | 0.36 | 0.38 | 0.39 | 0.40 | 0.40 | 0.41 | 0.39 |
| 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 |
Darden Restaurants Inc's solvency ratios have remained relatively stable over the past few quarters. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have consistently been low, indicating a strong financial position with minimal reliance on debt to finance its operations.
The financial leverage ratio, which measures the company's total assets relative to its equity, has shown some variability but generally remains within a reasonable range. This suggests that Darden Restaurants is efficiently utilizing its assets to generate profits and maintain a healthy balance between debt and equity financing.
Overall, Darden Restaurants Inc appears to have a solid financial structure with low leverage and a strong ability to meet its debt obligations, indicating stability and sustainability in its operations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio for Darden Restaurants Inc has shown fluctuation over the periods analyzed. The ratio measures the company's ability to pay interest expenses on its outstanding debt, with higher values indicating a stronger ability to meet interest obligations.
From February 2024 to August 2023, the interest coverage ratio exhibited a positive trend, peaking at 26.59 in May 2023. This indicates that Darden Restaurants had ample earnings to cover its interest payments during this period. However, the ratio dropped significantly in the subsequent quarters, reaching negative territory in May 2021 and showing a severe decline in financial health.
The negative values in May 2021, February 2021, and November 2020 suggest that the company's earnings were insufficient to cover its interest expenses during those periods. This could indicate potential financial distress and heightened risk for creditors.
It is important to note the sharp recovery in the interest coverage ratio in the latest quarters, notably with a strong rebound to 37.17 in February 2020 and 27.12 in November 2019. These high values suggest robust earnings relative to interest costs, portraying improved financial health and enhanced debt-servicing capacity for Darden Restaurants Inc.
Overall, while the interest coverage ratio for Darden Restaurants Inc has shown variability, the recent upward trend indicates a positive financial performance and an improved ability to meet interest obligations.