Aramark Holdings (ARMK)

Fixed asset turnover

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	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	16,367,500	16,329,860	16,290,710
Property, plant and equipment	US$ in thousands	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	2,181,800	2,143,760	2,142,940
Fixed asset turnover		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	7.50	7.62	7.60

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $19,603,060K ÷ $1,490,480K
= 13.15

The fixed asset turnover ratio for Aramark Holdings has fluctuated over the past few years, ranging from a low of 5.01 in March 2021 to a high of 13.97 in September 2023.

A higher fixed asset turnover ratio indicates that the company is generating more revenue relative to its investment in fixed assets, which is a positive sign of operational efficiency. The increase in the ratio from 2021 to 2023 suggests that Aramark Holdings has been more effective in utilizing its fixed assets to generate sales.

However, the ratio experienced some variability during this period, with fluctuations observed from quarter to quarter. This may be influenced by changes in operational performance, management decisions related to asset utilization, or shifts in industry conditions.

Overall, the general trend of increasing fixed asset turnover is favorable as it indicates improved efficiency in generating revenue from the company's fixed assets.