Aramark Holdings (ARMK)
Gross profit margin
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 600,355 | 1,079,060 | 634,257 | 255,108 | -294,943 |
| Revenue | US$ in thousands | 17,425,800 | 19,257,800 | 15,941,600 | 11,818,400 | 12,437,600 |
| Gross profit margin | 3.45% | 5.60% | 3.98% | 2.16% | -2.37% |
September 30, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $600,355K ÷ $17,425,800K
= 3.45%
The gross profit margin of Aramark Holdings has fluctuated over the past five years, ranging from a low of -2.37% in 2020 to a high of 5.60% in 2023. The gross profit margin indicates the company's efficiency in generating profits from its core business activities after accounting for the cost of goods sold.
The significant improvement in the gross profit margin from 2020 to 2023 reflects increased profitability and better cost management practices. However, the decline in 2024 to 3.45% suggests a potential decrease in profitability compared to the previous year.
Overall, while there have been fluctuations in Aramark Holdings' gross profit margin over the years, the company should continue to focus on strategies to improve efficiency in its core operations to sustain or increase profitability in the future.
Peer comparison
Sep 30, 2024