Aramark Holdings (ARMK)

Receivables 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
Revenue (ttm)	US$ in thousands	17,220,030	17,990,200	19,113,600	19,603,060	19,914,720	18,710,200	17,336,900	16,595,300	15,942,560	15,070,690	14,063,660	13,022,850	11,818,380	10,986,830	10,018,580	10,929,130	12,437,650	14,084,690	15,944,550	16,214,300
Receivables	US$ in thousands	2,096,930	2,199,880	2,220,630	2,198,780	1,970,780	2,405,890	2,353,580	2,299,810	2,147,960	2,052,240	1,989,040	1,896,710	1,748,600	1,532,880	1,466,150	1,511,080	1,431,210	1,423,190	1,850,980	1,971,940
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

September 30, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $17,220,030K ÷ $2,096,930K
= 8.21

The receivables turnover ratio for Aramark Holdings has shown some fluctuations over the past few quarters. The ratio indicates how efficiently the company is able to collect its accounts receivable during a specific period. A higher receivables turnover ratio generally suggests that the company is collecting its receivables more quickly.

In the most recent quarter, the receivables turnover ratio was 8.21, which indicates that, on average, the company collects its receivables approximately 8.21 times during the period. This is slightly higher than the previous quarter's ratio of 8.18.

Looking back over the past several quarters, there have been fluctuations in the ratio, with some quarters showing higher ratios (e.g., 10.10 in Sep 30, 2023) and others lower (e.g., 6.76 in Mar 31, 2021). These fluctuations could be due to various factors, such as changes in the company's credit policies, industry trends, or shifts in customer payment behaviors.

Overall, the trend of the receivables turnover ratio for Aramark Holdings indicates that the company has been relatively consistent in its ability to collect its receivables efficiently. By monitoring this ratio over time, investors and analysts can gain insights into the company's liquidity, operational efficiency, and potential cash flow risks related to accounts receivable management.