Aramark Holdings (ARMK)

Quick 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	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	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	2,096,930	2,199,880	2,220,630	2,198,780	1,970,780	2,405,890	2,353,580	2,299,810	2,147,960	2,052,240	1,989,040	1,896,710	1,748,600	1,532,880	1,466,150	1,511,080	1,431,210	1,423,190	1,850,980	1,971,940
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
Quick ratio		0.67	0.80	1.01	1.05	0.78	0.98	0.89	0.97	0.78	0.97	0.90	0.98	0.80	0.86	1.20	1.18	1.68	1.81	1.33	0.97

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 fluctuated over the past years, ranging from a low of 0.67 to a high of 1.81. The quick ratio, which measures the company's ability to meet its short-term obligations with its most liquid assets, indicates that Aramark Holdings has generally had an acceptable level of liquidity.

A quick ratio of less than 1.0 may suggest potential difficulties in meeting short-term obligations, as liabilities may exceed liquid assets. Aramark Holdings experienced this scenario in several periods, with the lowest quick ratio recorded at 0.67. Notably, the company improved its liquidity position in subsequent periods, reaching a peak quick ratio of 1.81, demonstrating a stronger ability to cover short-term obligations with liquid assets, such as cash and receivables.

Overall, while the company's quick ratio has shown variability, it is crucial for Aramark Holdings to maintain a balance between liquidity and operational efficiency to ensure it can meet its short-term obligations effectively. Monitoring the quick ratio over time can provide insights into the company's liquidity management and financial health.