Aramark Holdings (ARMK)

Receivables turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Revenue	US$ in thousands	17,425,800	19,257,800	15,941,600	11,818,400	12,437,600
Receivables	US$ in thousands	2,096,930	1,970,780	2,147,960	1,748,600	1,431,210
Receivables turnover		8.31	9.77	7.42	6.76	8.69

September 30, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $17,425,800K ÷ $2,096,930K
= 8.31

Aramark Holdings' receivables turnover ratio has exhibited fluctuations over the past five years. The ratio indicates the company's efficiency in collecting cash from customers for credit sales. A higher receivables turnover ratio is generally favorable as it suggests that the company is collecting receivables more quickly.

In 2024, the receivables turnover ratio decreased to 8.31 from 9.77 in 2023, indicating a decline in the efficiency of collecting cash from customers. However, the ratio remains relatively high, suggesting that Aramark Holdings is still efficient in managing its accounts receivable.

Compared to 2022 and 2021, where the receivables turnover was 7.42 and 6.76 respectively, the ratios have improved in 2023 and 2024, indicating better efficiency in collecting receivables.

In 2020, the receivables turnover ratio was 8.69, slightly higher than in 2024, suggesting that Aramark Holdings was more efficient in collecting receivables that year compared to the most recent data.

Overall, while there has been variability in Aramark Holdings' receivables turnover ratio over the years, the company has generally maintained a relatively high level of efficiency in collecting cash from customers for credit sales.