Aramark Holdings (ARMK)

Quick ratio

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash	US$ in thousands	295,597	1,927,090	402,414	302,692	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	246,643	220,055	195,387
Short-term investments	US$ in thousands	111,700	36,051	109,800	109,100	16,822	78,204	3,817	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	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	1,806,960	1,832,910	1,878,150
Total current liabilities	US$ in thousands	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	2,705,300	2,159,400	2,311,100
Quick ratio		1.05	0.78	1.01	0.93	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	0.76	0.95	0.90

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($295,597K + $111,700K + $2,198,780K) ÷ $2,489,410K
= 1.05

The quick ratio of Aramark Holdings has varied over time, indicating fluctuations in the company's ability to meet its short-term obligations with its most liquid assets. As of Dec 31, 2023, the quick ratio was 1.05, which suggests that the company had $1.05 in liquid assets to cover each $1 of current liabilities. This indicates a relatively solid short-term liquidity position.

However, the quick ratio has shown some inconsistencies in recent quarters, with values below 1 in some periods, such as Sep 30, 2023, and Mar 31, 2023. A quick ratio below 1 may indicate potential liquidity issues, as the company may have difficulty meeting its short-term obligations without relying on additional sources of financing.

Overall, the trend in the quick ratio of Aramark Holdings shows some variability, with fluctuations in the company's ability to cover its short-term liabilities with its quickly convertible assets. Further analysis of the company's cash flow and working capital management may provide additional insights into its liquidity position.