Aramark Holdings (ARMK)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	17,220,030	17,990,200	19,113,600	19,603,060	19,914,720	18,710,200	17,336,900	16,595,300	15,942,560	15,070,690	14,063,660	13,022,850	11,818,380	10,986,830	10,018,580	10,929,130	12,437,650	14,084,690	15,944,550	16,214,300
Property, plant and equipment	US$ in thousands	1,573,190	1,493,780	1,490,770	1,490,480	1,425,970	2,037,170	2,015,040	2,032,040	2,032,040	2,017,090	2,007,170	2,013,000	2,038,390	2,001,630	1,999,950	2,029,260	2,050,900	2,066,360	2,129,310	2,158,160
Fixed asset turnover		10.95	12.04	12.82	13.15	13.97	9.18	8.60	8.17	7.85	7.47	7.01	6.47	5.80	5.49	5.01	5.39	6.06	6.82	7.49	7.51

September 30, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $17,220,030K ÷ $1,573,190K
= 10.95

The fixed asset turnover ratio for Aramark Holdings has shown a fluctuating trend over the periods analyzed. The ratio measures how effectively the company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates better efficiency in generating revenue from fixed assets.

From December 2019 to September 2020, the fixed asset turnover ratio increased steadily from 5.39 to 6.82, suggesting improved efficiency in utilizing fixed assets to generate revenue. However, there was a slight decline in the ratio in the subsequent periods until March 2021.

From March 2021 to September 2023, there was a consistent upward trend in the fixed asset turnover ratio, reaching a peak of 13.97 in September 2023. This indicates a significant improvement in the utilization of fixed assets to generate revenue during this period.

Subsequently, there was a decline in the ratio from September 2023 to September 2024, although it remained relatively high, indicating continued efficiency in generating revenue from fixed assets, albeit at a slightly lower level compared to the peak.

Overall, the analysis of Aramark Holdings' fixed asset turnover ratio suggests that the company has demonstrated varying levels of efficiency in utilizing its fixed assets to generate revenue, with some periods showing significant improvements while others experiencing fluctuations.