Aramark Holdings (ARMK)

Working capital 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
Total current assets	US$ in thousands	3,406,560	3,330,370	3,328,420	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
Total current liabilities	US$ in thousands	4,214,210	3,452,970	2,658,100	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
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

September 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $17,220,030K ÷ ($3,406,560K – $4,214,210K)
= —

The working capital turnover ratio for Aramark Holdings has shown significant variation over the periods analyzed. The working capital turnover was exceptionally high at 2,613.53 for the quarter ending September 30, 2022, indicating that the company efficiently utilized its working capital to generate revenue during that period.

However, this high ratio seems to be an outlier as the ratio for the following periods shows a more moderate range. The working capital turnover ratio decreased to 285.26 for the quarter ending December 31, 2022, and further decreased to 104.78 for the quarter ending September 30, 2023.

In the most recent quarter analyzed, for the quarter ending March 31, 2024, the working capital turnover ratio improved to 28.51, showing a more efficient utilization of working capital compared to the previous two quarters.

Overall, the trend in the working capital turnover ratio for Aramark Holdings appears to be volatile, with fluctuations observed in different periods. Therefore, it is important for stakeholders to closely monitor this ratio to evaluate the company's effectiveness in managing its working capital to generate revenue.