The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Darden Restaurants's quick ratio for the quarter that ended in Feb. 2024 was 0.25.
Darden Restaurants has a quick ratio of 0.25. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Darden Restaurants's Quick Ratio or its related term are showing as below:
DRI'
s Quick Ratio Range Over the Past 10 Years
Min: 0.2 Med: 0.42 Max: 1.1
Current: 0.25
During the past 13 years, Darden Restaurants's highest Quick Ratio was 1.10. The lowest was 0.20. And the median was 0.42.
DRI's Quick Ratio is ranked worse than 89.97% of 349
companies
in the Restaurants industry
Industry Median: 0.9
vs DRI: 0.25
Darden Restaurants Quick Ratio Historical Data
The historical data trend for Darden Restaurants's Quick 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 Quick Ratio
For the Restaurants subindustry, Darden Restaurants's Quick Ratio, along with its competitors' market caps and Quick 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 Quick Ratio Distribution in the Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Darden Restaurants's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Darden Restaurants's Quick Ratio falls into.
Darden Restaurants Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Darden Restaurants's Quick 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) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Darden Restaurants Quick Ratio Related Terms
Thank you for viewing the detailed overview of Darden Restaurants's Quick 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 