Aramark Holdings (ARMK)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 43.27 46.46 45.18 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
Receivables turnover 8.21 8.18 8.61 8.92 10.10 7.78 7.37 7.22 7.42 7.34 7.07 6.87 6.76 7.17 6.83 7.23 8.69 9.90 8.61 8.22
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
Working capital turnover — — 28.51 28.91 104.78 22.01 27.59 22.10 2,613.53 23.62 37.65 24.14 285.26 39.43 9.03 9.59 5.34 5.78 11.74 30.51

Aramark Holdings' inventory turnover has shown a consistent trend of improvement over the recent quarters, reaching 43.27 times in the most recent period. This indicates that the company is efficiently managing its inventory and selling its products quickly.

In terms of receivables turnover, Aramark has maintained a relatively stable performance, with a slight decrease in the most recent quarter to 8.21 times. This suggests that the company is collecting its receivables at a consistent pace.

The payables turnover ratio for Aramark has fluctuated over the quarters but has generally remained within a reasonable range. The most recent figure of 12.03 times indicates that the company is paying its suppliers approximately 12 times a year, reflecting efficient management of its accounts payable.

The working capital turnover ratio, showing how efficiently the company is utilizing its working capital to generate sales, has varied significantly. The substantial jump to 2,613.53 times in one quarter and subsequent declines indicate some volatility in the company's working capital management efficiency.

Overall, while Aramark Holdings exhibits solid efficiency in managing inventory and payables, it may need to focus on improving the stability of its working capital turnover to ensure consistent utilization of resources in generating sales.

Average number of days

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
Days of inventory on hand (DOH) days 8.44 7.86 8.08 7.49 8.14 12.63 13.43 13.10 13.22 12.94 11.82 11.44 13.09 13.64 14.95 13.87 12.80 11.39 9.97 9.86
Days of sales outstanding (DSO) days 44.45 44.63 42.41 40.94 36.12 46.93 49.55 50.58 49.18 49.70 51.62 53.16 54.00 50.92 53.42 50.47 42.00 36.88 42.37 44.39
Number of days of payables days 30.34 22.09 22.82 22.33 25.64 22.33 25.06 25.13 31.65 22.82 25.20 22.84 29.15 22.87 24.12 20.92 19.46 16.49 19.59 21.18

The Days of Inventory on Hand (DOH) ratio measures how quickly a company is able to turn its inventory into sales. A lower DOH indicates that the company is efficient in managing its inventory levels. Aramark Holdings' DOH has been relatively stable over the past few quarters, ranging from 7.49 days to 8.44 days. This suggests that the company has been maintaining a consistent level of inventory turnover.

The Days of Sales Outstanding (DSO) ratio indicates how long it takes for the company to collect its accounts receivable. A lower DSO is favorable as it suggests that the company is efficient in collecting sales revenue. Aramark Holdings' DSO has shown some fluctuations over the quarters, ranging from 36.12 days to 54.00 days. The trend indicates that the company may have faced challenges in collecting receivables promptly in certain periods.

The Number of Days of Payables ratio relates to how long it takes the company to pay its suppliers. A higher number of days indicates that the company takes longer to pay its bills, potentially signaling favorable liquidity management. Aramark Holdings' payables days have varied over the quarters, with a range from 16.49 days to 31.65 days. The data suggests that the company has been managing its payables effectively, with flexibility in its payment terms.

Overall, Aramark Holdings has shown a stable performance in inventory turnover, some variability in accounts receivable collection efficiency, and effective management of payment terms to suppliers. Monitoring these activity ratios can help assess the company's operational efficiency and cash flow management.

Long-term

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
Fixed asset turnover 10.95 12.04 12.82 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
Total asset turnover 1.36 1.43 1.52 1.58 1.18 1.22 1.12 1.09 1.06 1.01 0.96 0.90 0.82 0.78 0.69 0.75 0.79 0.90 1.07 1.14

The fixed asset turnover ratio for Aramark Holdings has shown an increasing trend over the past years, indicating that the company is generating more revenue per dollar invested in fixed assets. This suggests that Aramark is efficiently utilizing its fixed assets to generate sales.

On the other hand, the total asset turnover ratio has fluctuated over the same period, but overall, it has shown a slight increase. This ratio measures how efficiently the company is using all its assets to generate sales. The increasing trend suggests that Aramark is making better use of its total assets to generate revenue.

Overall, the trend in both fixed asset turnover and total asset turnover ratios indicates that Aramark Holdings is effectively managing its assets to generate sales, which is a positive sign for the company's financial health and operational efficiency.