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Darden Restaurants Quick Ratio

: 0.68 (As of Feb. 2021)
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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. 2021 was 0.68.

Darden Restaurants has a quick ratio of 0.68. It indicates that the company cannot currently fully pay back its current liabilities.

NYSE:DRI' s Quick Ratio Range Over the Past 10 Years
Min: 0.16   Med: 0.28   Max: 1.1
Current: 0.68

0.16
1.1

During the past 13 years, Darden Restaurants's highest Quick Ratio was 1.10. The lowest was 0.16. And the median was 0.28.

NYSE:DRI's Quick Ratio is ranked lower than
67% of the 332 Companies
in the Restaurants industry.

( Industry Median: 0.92 vs. NYSE:DRI: 0.68 )

Darden Restaurants Quick Ratio Historical Data

* 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 Annual Data
May11 May12 May13 May14 May15 May16 May17 May18 May19 May20
Quick Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.54 0.32 0.25 0.46 0.50

Darden Restaurants Quarterly Data
May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21
Quick Ratio 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 0.27 0.50 0.51 0.59 0.68

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 Quick Ratio Distribution

* 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. 2020 is calculated as

Quick Ratio (A: May. 2020 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(1101.4-206.9)/1792.8
=0.50

Darden Restaurants's Quick Ratio for the quarter that ended in Feb. 2021 is calculated as

Quick Ratio (Q: Feb. 2021 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(1300.4-188.2)/1646.5
=0.68

* 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


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