Aramark Holdings (ARMK)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	672,483	436,075	356,605	295,597	1,927,090	388,166	292,199	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
Short-term investments	US$ in thousands	42,342	114,300	112,800	111,700	36,051	14,248	10,493	16,822	78,204	3,817	—	—	—	—	—	—	—	—	—	—
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
Cash ratio		0.17	0.16	0.18	0.16	0.39	0.14	0.10	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

September 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($672,483K + $42,342K) ÷ $4,214,210K
= 0.17

The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. It is calculated by dividing the total cash and cash equivalents by the total current liabilities.

Based on the data provided for Aramark Holdings, the cash ratio has shown fluctuations over the past several quarters. In the most recent quarter, as of September 30, 2024, the cash ratio was 0.17, indicating that Aramark Holdings had $0.17 in cash and cash equivalents for every $1 of current liabilities.

Comparing this ratio to previous quarters, we observe a downward trend from the high of 1.14 in December 2019 to the low of 0.17 in September 2024. This trend suggests a potential decrease in the company's liquidity position over time.

The significant drop in the cash ratio in the September 2023 quarter to 0.39 could indicate a potential issue with liquidity management, which seems to have improved in subsequent quarters but remains relatively low.

Overall, the trend in Aramark Holdings' cash ratio indicates the need for closer monitoring of the company's ability to cover its short-term obligations with its available cash resources. Further analysis of the company's cash flow dynamics and liquidity management practices may provide insights into improving this ratio moving forward.