Aramark Holdings (ARMK)

Quick ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Cash	US$ in thousands	1,927,090	329,452	532,591	2,509,190	246,643
Short-term investments	US$ in thousands	36,051	78,204	—	—	—
Receivables	US$ in thousands	1,970,780	2,147,960	1,748,600	1,431,210	1,806,960
Total current liabilities	US$ in thousands	5,029,970	3,285,890	2,857,430	2,347,460	2,705,300
Quick ratio		0.78	0.78	0.80	1.68	0.76

September 30, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,927,090K + $36,051K + $1,970,780K) ÷ $5,029,970K
= 0.78

The quick ratio of Aramark Holdings has shown fluctuations over the past five years. In 2023 and 2022, the quick ratio remained stable at 0.78. This indicates that for every dollar of current liabilities, Aramark has $0.78 of highly liquid assets available to cover those obligations.

In 2021, the quick ratio decreased slightly to 0.80, suggesting a marginal improvement in the company's ability to meet its short-term obligations with liquid assets. However, the quick ratio experienced a substantial decline in 2020 to 1.68, indicating a significant increase in the company's liquidity position that year.

The quick ratio then reverted to a lower level in 2019, dropping to 0.76, which suggests decreased liquidity compared to the prior year.

Overall, the quick ratio of Aramark Holdings has exhibited variability over the past five years, with the company's ability to cover short-term liabilities with liquid assets fluctuating within a range of 0.76 to 1.68. This trend indicates the importance of closely monitoring the company's liquidity position and its ability to meet short-term financial obligations.