Darden Restaurants has a Cash Ratio of 0.11. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for Darden Restaurants's Cash Ratio or its related term are showing as below:
DRI'
s Cash Ratio Range Over the Past 10 Years
Min: 0.06 Med: 0.2 Max: 0.66
Current: 0.11
During the past 13 years, Darden Restaurants's highest Cash Ratio was 0.66. The lowest was 0.06. And the median was 0.20.
DRI's Cash Ratio is ranked worse than 85.71% of 343
companies
in the Restaurants industry
Industry Median: 0.54
vs DRI: 0.11
Darden Restaurants Cash Ratio Historical Data
The historical data trend for Darden Restaurants's Cash Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Darden Restaurants's Cash Ratio
For the Restaurants subindustry, Darden Restaurants's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Darden Restaurants's Cash Ratio Distribution in the Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Darden Restaurants's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Darden Restaurants's Cash Ratio falls into.
Darden Restaurants Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Darden Restaurants's Cash Ratio for the fiscal year that ended in May. 2023 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Darden Restaurants (NYSE:DRI) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Darden Restaurants Cash Ratio Related Terms
Thank you for viewing the detailed overview of Darden Restaurants's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Darden Restaurants (Darden Restaurants) Business Description
Darden Restaurants is the largest restaurant operator in the U.S. full-service space, with consolidated revenue of $10.5 billion in fiscal 2023 resulting in 3%-4% full-service market share (per NRA data and our calculations). The company maintains a portfolio of 10 restaurant brands: Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Ruth's Chris, Yard House, The Capital Grille, Seasons 52, Eddie V's, Bahama Breeze, and The Capital Burger. Darden generates revenue almost exclusively from company-owned restaurants, though a small network of franchised restaurants and consumer-packaged goods sales through the traditional grocery channel contribute modestly. As of the end of its fiscal 2023, the company operated 1,914 restaurants in the U.S.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
DRI has been successfully added to your 