Aramark Holdings (ARMK)

Quick ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cash	US$ in thousands	672,483	1,927,090	329,452	532,591	2,509,190
Short-term investments	US$ in thousands	42,342	36,051	78,204	—	—
Receivables	US$ in thousands	2,096,930	1,970,780	2,147,960	1,748,600	1,431,210
Total current liabilities	US$ in thousands	4,214,210	5,029,970	3,285,890	2,857,430	2,347,460
Quick ratio		0.67	0.78	0.78	0.80	1.68

September 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($672,483K + $42,342K + $2,096,930K) ÷ $4,214,210K
= 0.67

The quick ratio of Aramark Holdings has shown a consistent decline from 1.68 in 2020 to 0.67 in 2024. This ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities using its current assets. The decreasing trend in the quick ratio over the years suggests a potential weakening of Aramark Holdings' liquidity position. It is important for investors and stakeholders to monitor this trend closely as a declining quick ratio could signal financial distress or operational inefficiencies within the company.