Aramark Holdings (ARMK)

Payables 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
Payables	US$ in thousands	1,096,190	1,271,860	1,048,600	1,137,910	1,092,640	1,322,940	908,135	928,782	785,372	919,090	675,646	684,913	644,270	663,455	618,136	793,464	855,214	999,517	819,922	911,785
Payables turnover		16.35	14.24	16.34	14.56	14.53	11.53	16.00	14.49	15.98	12.52	15.96	15.13	17.44	18.76	22.13	18.64	17.23	14.64	17.70	15.84

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $17,920,430K ÷ $1,096,190K
= 16.35

The payables turnover ratio measures how efficiently a company manages its accounts payable by comparing the cost of goods sold to its average accounts payable for a period. A higher payables turnover ratio indicates that the company is paying off its suppliers more quickly.

Analyzing Aramark Holdings' payables turnover ratio over the past years, we observe fluctuations in the ratio. In the most recent period, the payables turnover was 16.35, indicating that the company paid off its suppliers approximately 16.35 times during the year. This was an improvement from the previous quarter, where the ratio was 14.24.

Looking at the trend over the past several quarters, we notice some variability in the payables turnover ratio. The ratio ranged from a low of 11.53 to a high of 22.13, with no clear upward or downward trend. The average payables turnover ratio over the period appears to be around 15, suggesting a moderate efficiency in managing accounts payable.

It is essential to consider the industry benchmarks and compare Aramark Holdings' payables turnover ratio with its peers to gain a better understanding of its performance in managing supplier payments. Additionally, further analysis of the company's cash flow, working capital management, and supplier relationships can provide more insights into its payables turnover efficiency.