Aramark Holdings (ARMK)
Profitability ratios
Return on sales
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 5.60% | 3.98% | 2.16% | -2.37% | 4.30% |
| Operating profit margin | 4.48% | 3.94% | 1.62% | -2.13% | 5.56% |
| Pretax margin | 4.42% | 1.61% | -1.11% | -5.21% | 3.47% |
| Net profit margin | 3.50% | 1.22% | -0.77% | -3.71% | 2.80% |
Aramark Holdings has shown improvements in profitability over the past five years. The gross profit margin has fluctuated, reaching 5.60% in 2023, a significant improvement from the negative margin in 2020. The operating profit margin has also seen an upward trend, standing at 4.48% in 2023 compared to -2.13% in 2020.
Similarly, the pretax margin has shown positive growth, reaching 4.42% in 2023 from a negative margin in 2020. The net profit margin has also improved, standing at 3.50% in 2023 compared to -3.71% in 2020. These improvements demonstrate Aramark Holdings' ability to increase profitability and efficiency in managing its operations over the years.
Return on investment
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.11% | 4.17% | 1.33% | -1.69% | 6.49% |
| Return on assets (ROA) | 4.00% | 1.29% | -0.63% | -2.94% | 3.27% |
| Return on total capital | 34.83% | 21.04% | 10.37% | -9.44% | 27.38% |
| Return on equity (ROE) | 18.16% | 6.42% | -3.34% | -16.87% | 13.51% |
Aramark Holdings has shown a mixed performance in terms of profitability ratios over the past five years.
Operating return on assets (Operating ROA) has seen fluctuations from negative levels in 2020 to a positive trend in recent years, reaching 5.11% in 2023. This indicates the company's ability to generate operating income from its assets has improved over time.
Return on assets (ROA) has also shown improvement, with a positive trend observed since 2021. The ratio increased to 4.00% in 2023, suggesting that Aramark is becoming more efficient in generating profits from its total assets.
The return on total capital has been quite volatile, with significant fluctuations over the years. However, there has been a notable increase in 2023, reaching 34.83%. This signifies that Aramark is generating higher returns in relation to the total capital employed by the company.
Return on equity (ROE) has displayed a similar pattern to ROA, with positive improvements since 2021. The ratio stood at 18.16% in 2023, indicating that the company is generating a satisfactory return for its equity shareholders.
Overall, Aramark Holdings' profitability ratios have shown a positive trajectory in recent years, reflecting improving efficiency in asset utilization and profitability. However, the company should continue to monitor and enhance its performance to ensure sustained profitability in the future.