Aramark Holdings (ARMK)

Days of inventory on hand (DOH)

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Inventory turnover		43.27	46.46	45.18	48.75	44.86	28.89	27.19	27.85	27.62	28.21	30.89	31.91	27.88	26.76	24.41	26.31	28.51	32.06	36.62	37.04
DOH	days	8.44	7.86	8.08	7.49	8.14	12.63	13.43	13.10	13.22	12.94	11.82	11.44	13.09	13.64	14.95	13.87	12.80	11.39	9.97	9.86

September 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 43.27
= 8.44

The Days of Inventory on Hand (DOH) for Aramark Holdings has shown fluctuations over the past years. In the most recent period ending on September 30, 2024, the company had 8.44 days of inventory on hand, which was slightly higher compared to the previous quarter but lower than the levels seen in the same period last year.

Historically, there have been instances of significantly higher DOH, such as in the first quarter of 2021 and the second and third quarters of 2023, where the company had over 13 days of inventory on hand. This may suggest issues with inventory management efficiency during those periods.

The trend towards lower DOH in the recent quarters could indicate improvements in inventory management practices, potentially resulting in lower carrying costs and better cash flow management. However, it is essential for the company to strike a balance to ensure that inventory levels are adequate to meet customer demand without leading to excessive holding costs or potential stockouts.

Further monitoring of the DOH ratio will help in evaluating the effectiveness of Aramark Holdings in managing its inventory levels efficiently and optimizing its working capital position.