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Darden Restaurants (BSP:D1RI34) Cash Conversion Cycle : -2.54 (As of Aug. 2024)


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What is Darden Restaurants Cash Conversion Cycle?

Cash Conversion Cycle is one of several measures of management effectiveness. It equals Days Sales Outstanding + Days Inventory - Days Payable.

Darden Restaurants's Days Sales Outstanding for the three months ended in Aug. 2024 was 1.7.
Darden Restaurants's Days Inventory for the three months ended in Aug. 2024 was 11.78.
Darden Restaurants's Days Payable for the three months ended in Aug. 2024 was 16.02.
Therefore, Darden Restaurants's Cash Conversion Cycle (CCC) for the three months ended in Aug. 2024 was -2.54.


Darden Restaurants Cash Conversion Cycle Historical Data

The historical data trend for Darden Restaurants's Cash Conversion Cycle 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.

* Premium members only.

Darden Restaurants Cash Conversion Cycle Chart

Darden Restaurants Annual Data
Trend May15 May16 May17 May18 May19 May20 May21 May22 May23 May24
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.53 -3.50 -3.68 -3.69 -3.63

Darden Restaurants Quarterly Data
Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24
Cash Conversion Cycle Get a 7-Day Free Trial 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 -4.06 -2.82 -1.98 -2.51 -2.54

Competitive Comparison of Darden Restaurants's Cash Conversion Cycle

For the Restaurants subindustry, Darden Restaurants's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle 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 Conversion Cycle Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Darden Restaurants's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Darden Restaurants's Cash Conversion Cycle falls into.



Darden Restaurants Cash Conversion Cycle Calculation

Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.

Cash Conversion Cycle is one of several measures of management effectiveness.

Darden Restaurants's Cash Conversion Cycle for the fiscal year that ended in May. 2024 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=1.31+11.58-16.52
=-3.63

Darden Restaurants's Cash Conversion Cycle for the quarter that ended in Aug. 2024 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=1.7+11.78-16.02
=-2.54

* 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  (BSP:D1RI34) Cash Conversion Cycle Explanation

Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.


Be Aware

CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.

The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.


Darden Restaurants Cash Conversion Cycle Related Terms

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Darden Restaurants Business Description

Traded in Other Exchanges
Address
1000 Darden Center Drive, Orlando, FL, USA, 32837
Darden Restaurants is the largest restaurant operator in the us full-service space, with consolidated revenue of $11.4 billion in fiscal 2024 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 2024, the company operated 2,031 restaurants in the us.

Darden Restaurants Headlines

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