Aramark Holdings (ARMK)

Days of sales outstanding (DSO)

		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
Receivables turnover		8.21	8.18	8.61	8.92	10.10	7.78	7.37	7.22	7.42	7.34	7.07	6.87	6.76	7.17	6.83	7.23	8.69	9.90	8.61	8.22
DSO	days	44.45	44.63	42.41	40.94	36.12	46.93	49.55	50.58	49.18	49.70	51.62	53.16	54.00	50.92	53.42	50.47	42.00	36.88	42.37	44.39

September 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.21
= 44.45

The Days of Sales Outstanding (DSO) for Aramark Holdings have exhibited fluctuations over the past few quarters. DSO represents the average number of days it takes a company to collect payment after a sale is made.

Aramark Holdings' DSO has ranged from a low of 36.12 days in September 2023 to a high of 54.00 days in December 2021. A lower DSO indicates that the company is collecting payments more quickly, which can improve cash flow and liquidity. On the other hand, a higher DSO may suggest inefficiencies in the collection process and potential cash flow challenges.

The trend in DSO for Aramark Holdings has shown some variability, with no clear pattern of improvement or deterioration over the periods analyzed. It is important for the company to monitor and manage its DSO effectively to ensure timely collections and optimize working capital management. Further analysis of the underlying factors impacting DSO, such as changes in credit policies, customer payment behavior, or operational efficiency, could provide valuable insights into the company's financial performance and liquidity position.