Aramark Holdings (ARMK)
Cash conversion cycle
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 8.41 | 8.11 | 13.17 | 13.03 | 12.51 |
| Days of sales outstanding (DSO) | days | 43.92 | 37.35 | 49.18 | 54.00 | 42.00 |
| Number of days of payables | days | 30.24 | 25.54 | 31.55 | 29.01 | 19.02 |
| Cash conversion cycle | days | 22.09 | 19.92 | 30.81 | 38.02 | 35.49 |
September 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 8.41 + 43.92 – 30.24
= 22.09
The cash conversion cycle of Aramark Holdings has shown fluctuations over the past five years. In 2024, the company's cash conversion cycle was 22.09 days, indicating that it took approximately 22 days for Aramark to convert its resources invested in operations back into cash. This represents an improvement compared to the previous year, where the cycle was 19.92 days.
In 2022, the cash conversion cycle increased to 30.81 days, suggesting a longer period to convert resources into cash, compared to the previous year's cycle of 38.02 days in 2021. However, it was a notable improvement from 2020 when the cycle was 35.49 days.
Overall, the trend in the cash conversion cycle for Aramark Holdings has been fluctuating, with some improvements in recent years. The company may want to focus on further optimizing its processes to reduce the time taken to convert resources into cash, which can improve its liquidity and efficiency.
Peer comparison
Sep 30, 2024