Aramark Holdings (ARMK)

Operating profit margin

		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
Operating income (ttm)	US$ in thousands	706,500	765,630	736,463	702,734	687,469	607,795	623,169	639,803	628,365	562,468	488,828	352,183	191,469	-34,795	-436,638	-539,660	-264,900	35,163	551,579	772,090
Revenue (ttm)	US$ in thousands	17,220,030	17,990,200	19,113,600	19,603,060	19,914,720	18,710,200	17,336,900	16,595,300	15,942,560	15,070,690	14,063,660	13,022,850	11,818,380	10,986,830	10,018,580	10,929,130	12,437,650	14,084,690	15,944,550	16,214,300
Operating profit margin		4.10%	4.26%	3.85%	3.58%	3.45%	3.25%	3.59%	3.86%	3.94%	3.73%	3.48%	2.70%	1.62%	-0.32%	-4.36%	-4.94%	-2.13%	0.25%	3.46%	4.76%

September 30, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $706,500K ÷ $17,220,030K
= 4.10%

The operating profit margin of Aramark Holdings has shown fluctuation over the past few quarters. The latest data as of September 30, 2024, indicates an operating profit margin of 4.10%, which is a slight decline from the previous quarter's figure of 4.26%. Despite this decrease, the current margin remains relatively stable compared to earlier periods.

Over the past year, the company has demonstrated an improvement in its operating profit margin, with successive quarters showing an upward trend from the negative margin reported in the first quarter of 2021. This positive trajectory reflects potential operational efficiencies and cost management strategies implemented by Aramark Holdings in recent quarters.

However, it is important to note that the operating profit margin in the most recent quarter is still below the peak level seen in the fourth quarter of 2019 at 4.76%. This suggests that there may be ongoing challenges or fluctuations impacting the company's profitability, which requires continued monitoring and potentially further cost optimization efforts.

Overall, while there have been improvements in the operating profit margin in recent periods, Aramark Holdings should continue to focus on maintaining and enhancing operational efficiency to sustain its profitability in the long term.