Aramark Holdings (ARMK)

Payables 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
Cost of revenue (ttm)	US$ in thousands	16,770,530	17,209,730	17,541,160	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
Payables	US$ in thousands	1,394,010	1,041,760	1,096,630	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
Payables turnover		12.03	16.52	16.00	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

September 30, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $16,770,530K ÷ $1,394,010K
= 12.03

Aramark Holdings' payables turnover has fluctuated over the past 20 quarters. The payables turnover ratio measures how efficiently a company manages its accounts payable by comparing the cost of goods sold to the average accounts payable balance. A higher ratio indicates a shorter time taken to pay suppliers.

Looking at the data for Aramark Holdings, the payables turnover ratio has ranged from 11.53 to 22.13 over the past two years. The company's payables turnover has seen peaks and troughs, with the highest being 22.13 in the third quarter of 2019 and the lowest at 11.53 in the third quarter of 2022. This variation suggests changes in the company's payment practices and relationships with suppliers.

Overall, the trend in payables turnover has been fluctuating but generally on the higher side, indicating that Aramark Holdings manages its accounts payable efficiently. Further analysis and comparison with industry peers would provide a more comprehensive understanding of the company's payables management strategy.