Aramark Holdings (ARMK)

Working capital turnover

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Revenue	US$ in thousands	19,257,800	15,941,600	11,818,400	12,437,600	16,025,900
Total current assets	US$ in thousands	5,220,030	3,291,990	2,898,860	4,675,810	2,658,390
Total current liabilities	US$ in thousands	5,029,970	3,285,890	2,857,430	2,347,460	2,705,300
Working capital turnover		101.32	2,613.38	285.26	5.34	—

September 30, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $19,257,800K ÷ ($5,220,030K – $5,029,970K)
= 101.32

The working capital turnover ratio for Aramark Holdings has shown significant fluctuations over the years, as indicated in the table. In 2023, the working capital turnover ratio of 101.32 suggests that the company generated $101.32 in revenue for every dollar of working capital invested during the period. This is a substantial increase from the previous year, where the ratio was significantly higher at 2,613.38.

The drastic changes in the working capital turnover ratios may indicate fluctuations in the efficiency of Aramark Holdings in managing its working capital to generate sales revenue. The extremely high ratio in 2022 could be a result of either a significant decrease in working capital or a substantial increase in sales during that year.

Further analysis of the factors affecting the working capital turnover ratio, such as changes in inventory management, accounts receivable, and accounts payable, would provide more insights into the company's operational efficiency over the years.