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Darden Restaurants Return-on-Tangible-Asset

: 6.30% (As of Feb. 2021)
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Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Darden Restaurants's annualized Net Income for the quarter that ended in Feb. 2021 was $515 Mil. Darden Restaurants's average total tangible assets for the quarter that ended in Feb. 2021 was $8,168 Mil. Therefore, Darden Restaurants's annualized Return-on-Tangible-Asset for the quarter that ended in Feb. 2021 was 6.30%.

NYSE:DRI' s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -2.73   Med: 10.6   Max: 20.11
Current: -2.73

-2.73
20.11

During the past 13 years, Darden Restaurants's highest Return-on-Tangible-Asset was 20.11%. The lowest was -2.73%. And the median was 10.60%.

NYSE:DRI's Return-on-Tangible-Asset is ranked higher than
63% of the 333 Companies
in the Restaurants industry.

( Industry Median: -6.67 vs. NYSE:DRI: -2.73 )

Darden Restaurants Return-on-Tangible-Asset Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are indicated in the company's associated stock exchange currency.

* Premium members only.

Darden Restaurants Annual Data
May11 May12 May13 May14 May15 May16 May17 May18 May19 May20
Return-on-Tangible-Asset Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.76 15.27 18.41 20.11 -0.88

Darden Restaurants Quarterly Data
May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21
Return-on-Tangible-Asset Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.06 -24.12 1.80 4.79 6.30

Competitive Comparison
* 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.


Darden Restaurants Return-on-Tangible-Asset Distribution

* The bar in red indicates where Darden Restaurants's Return-on-Tangible-Asset falls into.



Darden Restaurants Return-on-Tangible-Asset Calculation

Darden Restaurants's annualized Return-on-Tangible-Asset for the fiscal year that ended in May. 2020 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(A: May. 2020 )  (A: May. 2019 )(A: May. 2020 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(A: May. 2020 )  (A: May. 2019 )(A: May. 2020 )
=-52.4/( (3758.3+8102.8)/ 2 )
=-52.4/5930.55
=-0.88 %

Darden Restaurants's annualized Return-on-Tangible-Asset for the quarter that ended in Feb. 2021 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(Q: Feb. 2021 )  (Q: Nov. 2020 )(Q: Feb. 2021 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(Q: Feb. 2021 )  (Q: Nov. 2020 )(Q: Feb. 2021 )
=514.8/( (8083.9+8252.4)/ 2 )
=514.8/8168.15
=6.30 %

* All numbers are in millions except for per share data and ratio. All numbers are indicated in the company's associated stock exchange currency.

In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Feb. 2021) net income data.


Darden Restaurants  (NYSE:DRI) Return-on-Tangible-Asset Explanation

Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.


Be Aware

Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the company’s earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a company’s tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.


Darden Restaurants Return-on-Tangible-Asset Related Terms


Darden Restaurants Return-on-Tangible-Asset Headlines

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