Aramark Holdings (ARMK)
Current ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,406,560 | 5,220,030 | 3,291,990 | 2,898,860 | 4,675,810 |
| Total current liabilities | US$ in thousands | 4,214,210 | 5,029,970 | 3,285,890 | 2,857,430 | 2,347,460 |
| Current ratio | 0.81 | 1.04 | 1.00 | 1.01 | 1.99 |
September 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,406,560K ÷ $4,214,210K
= 0.81
The current ratio of Aramark Holdings has exhibited a declining trend over the past five years, decreasing from 1.99 in 2020 to 0.81 in 2024. This indicates that the company may be facing challenges in meeting its short-term obligations with its current assets. A current ratio below 1.0 typically suggests a potential liquidity issue as current liabilities exceed current assets.
It is important to note that a current ratio of less than 1.0 does not necessarily mean the company is insolvent, but it does raise concerns about its ability to pay its short-term debts. Investors and creditors may view a declining current ratio negatively as it signifies a decreasing ability to cover short-term obligations. Aramark Holdings should be cognizant of this trend and take proactive measures to improve its liquidity position.
Peer comparison
Sep 30, 2024