Aramark Holdings (ARMK)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	17,920,430	18,108,700	17,139,110	16,572,770	15,871,210	15,255,130	14,526,740	13,454,220	12,550,030	11,506,980	10,782,170	10,362,920	11,238,310	12,443,750	13,680,040	14,787,300	14,737,520	14,630,210	14,513,310	14,444,620
Inventory	US$ in thousands	367,614	403,707	593,168	609,589	569,815	552,386	514,887	435,614	393,268	412,676	402,875	424,473	427,195	436,473	426,766	403,799	397,933	411,319	393,115	400,269
Inventory turnover		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	35.57	36.92	36.09

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $17,920,430K ÷ $367,614K
= 48.75

The inventory turnover ratio for Aramark Holdings fluctuated over the period provided. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times a company sells and replaces its inventory within a specific period.

In this case, the inventory turnover ratio ranged from a low of 24.41 to a high of 48.75. Generally, a higher inventory turnover ratio is preferred as it indicates that a company is efficiently managing its inventory and swiftly turning it into sales.

Looking at the trend over the period provided, there seems to be some variability in the ratios. While there is some fluctuation, the company seems to maintain a relatively healthy inventory turnover ratio, indicating efficient inventory management practices. It is essential for the company to monitor this ratio closely to ensure optimal inventory levels to meet demand while minimizing carrying costs.