Aramark Holdings (ARMK)

Gross profit margin

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Gross profit	US$ in thousands	1,079,060	634,257	255,108	-294,943	689,715
Revenue	US$ in thousands	19,257,800	15,941,600	11,818,400	12,437,600	16,025,900
Gross profit margin		5.60%	3.98%	2.16%	-2.37%	4.30%

September 30, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $1,079,060K ÷ $19,257,800K
= 5.60%

Analyzing Aramark Holdings' gross profit margin over the past five years shows fluctuations in profitability. In 2023, the company achieved a gross profit margin of 5.60%, representing an improvement compared to the previous years. This suggests that Aramark effectively managed its cost of goods sold relative to its revenue, leading to a higher margin of profit on each dollar of sales.

Comparing this to the previous years, the gross profit margins were 3.98% in 2022, 2.16% in 2021, -2.37% in 2020, and 4.30% in 2019. The negative gross profit margin in 2020 indicates that Aramark experienced a loss on its cost of goods sold, potentially due to decreased revenues or an increase in direct costs.

The trend from negative in 2020 to positive in 2023 suggests that Aramark has taken corrective measures to improve its cost structure and operational efficiency. However, sustained monitoring of the gross profit margin is essential to ensure long-term profitability and sustainable growth.