Aramark Holdings (ARMK)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	295,597	1,927,090	402,414	302,692	288,228	329,452	438,868	429,306	415,467	532,591	483,429	1,400,010	1,166,200	2,509,190	2,417,260	1,203,000	264,618	246,643	220,055	195,387
Short-term investments	US$ in thousands	111,700	36,051	109,800	109,100	16,822	78,204	3,817	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Cash ratio		0.16	0.39	0.18	0.14	0.11	0.12	0.17	0.16	0.18	0.19	0.21	0.58	0.51	1.07	1.14	0.52	0.12	0.09	0.10	0.08

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($295,597K + $111,700K) ÷ $2,489,410K
= 0.16

The cash ratio of Aramark Holdings has fluctuated over the past few quarters, ranging from 0.08 to 1.14. The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to pay off short-term obligations.

The cash ratio was relatively low in the earlier quarters of 2019 and 2020, indicating a lower level of cash reserves compared to short-term liabilities. However, there was a notable increase in the cash ratio in the latter part of 2020 and throughout 2021, with the ratio peaking at 1.14 in the second quarter of 2020. This suggests that Aramark Holdings had significantly improved its ability to cover short-term obligations with cash during this period.

The cash ratio declined in 2022 but remained at a moderate level, indicating a reasonable ability to meet short-term obligations with available cash and cash equivalents. The ratio further decreased in 2023, hitting a low of 0.11 in the fourth quarter, potentially signaling tighter liquidity or increased short-term liabilities relative to cash reserves. Overall, while the cash ratio has shown some volatility, as of the most recent quarter, Aramark Holdings still maintains a moderate level of liquidity to meet short-term financial commitments.