Accounts Receivable are created when a customer has received a product but has not yet paid for that product. Darden Restaurants's accounts receivables for the quarter that ended in Feb. 2024 was $72 Mil.
Accounts receivable can be measured by Days Sales Outstanding.
Darden Restaurants's Days Sales Outstanding for the quarter that ended in Feb. 2024 was 2.21.
In Ben Graham's calculation of Net-Net Working Capital, accounts receivable are only considered to be worth 75% of book value. Darden Restaurants's Net-Net Working Capital per share for the quarter that ended in Feb. 2024 was $-73.12.
Darden Restaurants Accounts Receivable Historical Data
The historical data trend for Darden Restaurants's Accounts Receivable 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.
1. Accounts Receivable are created when a customer has received a product but has not yet paid for that product. Days Sales Outstanding measures of the average number of days that a company takes to collect revenue after a sale has been made. It is a financial ratio that illustrates how well a company's accounts receivables are being managed.
Darden Restaurants's Days Sales Outstanding for the quarter that ended in Feb. 2024 is calculated as:
2. In Ben Graham's calculation of Net-Net Working Capital (NNWC), Darden Restaurants's accounts receivable are only considered to be worth 75% of book value:
Darden Restaurants's Net-Net Working Capital Per Share for the quarter that ended in Feb. 2024 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.
Be Aware
Net receivables tells us a great deal about the different competitors in the same industry. In competitive industries, some attempt to gain advantage by offering better credit terms, causing increase in sales and receivables.
If company consistently shows lower % Net receivables to gross sales than competitors, then it usually has some kind of competitive advantage which requires further digging.
Average Days Sales Outstanding is a good indicator for measuring a company's sales channel and customers. A company may book great revenue and earnings growth but never receive payment from their customers. This may force a write-off in the future and depress future earnings.
Darden Restaurants Accounts Receivable Related Terms
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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.
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