Aramark Holdings (ARMK)

Working capital turnover

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	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	16,367,500	16,329,860	16,290,710
Total current assets	US$ in thousands	3,167,420	5,220,030	3,725,880	3,596,560	3,435,140	3,291,990	3,198,040	3,073,150	2,910,670	2,898,860	2,620,920	3,506,510	3,416,100	4,675,810	4,557,140	3,656,340	2,828,910	2,658,390	2,642,120	2,630,600
Total current liabilities	US$ in thousands	2,489,410	5,029,970	2,875,960	2,968,080	2,684,220	3,285,890	2,559,900	2,699,570	2,371,210	2,857,430	2,342,250	2,397,170	2,276,620	2,347,460	2,119,310	2,297,860	2,297,490	2,705,300	2,159,400	2,311,100
Working capital turnover		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	—	33.83	50.99

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $19,603,060K ÷ ($3,167,420K – $2,489,410K)
= 28.91

The working capital turnover ratio for Aramark Holdings has shown significant fluctuations over the periods indicated. The ratio measures how efficiently a company is utilizing its working capital to generate sales revenue.

Looking at the data, there are notable spikes and drops in the working capital turnover ratio. For instance, in September 2022, there is a significant outlier of 2,613.53, which is likely due to unusual fluctuations in either working capital or revenue for that period. This outlier should be carefully analyzed to ensure data accuracy and integrity.

Overall, the working capital turnover ratio for Aramark Holdings has exhibited volatility, indicating varying levels of efficiency in managing working capital to support sales levels. Further investigation into the factors driving these fluctuations, such as changes in operating efficiency, inventory management, or receivables collection, would be beneficial in understanding the company's financial performance and operational effectiveness.