Aramark Holdings (ARMK)

Current ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Total current assets	US$ in thousands	5,220,030	3,291,990	2,898,860	4,675,810	2,658,390
Total current liabilities	US$ in thousands	5,029,970	3,285,890	2,857,430	2,347,460	2,705,300
Current ratio		1.04	1.00	1.01	1.99	0.98

September 30, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $5,220,030K ÷ $5,029,970K
= 1.04

The current ratio measures a company's ability to cover its short-term obligations with its current assets. It is calculated by dividing current assets by current liabilities.

Looking at the trend in Aramark Holdings' current ratio over the past five years, we observe fluctuations in the company's liquidity position:

- In 2023, the current ratio stands at 1.04, indicating that the company has $1.04 in current assets for every $1 in current liabilities. This represents a slight improvement compared to the previous year.

- In 2022, the current ratio was 1.00, reflecting a balance between current assets and liabilities.

- In 2021, the current ratio was 1.01, again showing a stable liquidity position.

- In 2020, the current ratio significantly increased to 1.99, suggesting a stronger ability to meet short-term obligations with current assets.

- In 2019, the current ratio was 0.98, indicating that the company had less current assets relative to current liabilities, which may have raised concerns about its short-term liquidity.

Overall, the fluctuation in Aramark Holdings' current ratio over the past five years suggests varying levels of liquidity and the need for a closer examination of the company's management of current assets and liabilities to ensure its ability to meet short-term obligations effectively.