Aramark Holdings (ARMK)

Inventory turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cost of revenue	US$ in thousands	16,825,400	18,178,700	15,307,300	11,563,300	12,732,600
Inventory	US$ in thousands	387,601	403,707	552,386	412,676	436,473
Inventory turnover		43.41	45.03	27.71	28.02	29.17

September 30, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $16,825,400K ÷ $387,601K
= 43.41

Aramark Holdings' inventory turnover ratio measures how efficiently the company manages its inventory by evaluating how many times it sells and replaces its inventory within a given period. From the data provided, we observe a fluctuating trend in inventory turnover over the past five years.

In fiscal year 2024, Aramark achieved an inventory turnover of 43.41 times, indicating that the company sold and replaced its inventory approximately 43 times during the year. This represents a decrease from the previous year's ratio of 45.03 times.

Compared to fiscal year 2022 and 2023, where inventory turnover ratios were 27.71 and 28.02 times respectively, the company has shown significant improvement in managing its inventory more efficiently in recent years.

However, it is essential to note that the inventory turnover ratio fluctuated slightly in the range of 27 to 45 times over the last five years. This variability may suggest shifts in consumer demand, changes in procurement practices, or alterations in the company's sales strategies.

Overall, while Aramark's inventory turnover has shown some improvement in recent years, monitoring this ratio consistently will be crucial to ensure optimal inventory management practices and operational efficiency.