Aramark Holdings (ARMK)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	830,230	814,965	735,291	679,795	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	891,159	964,897	962,742
Total assets	US$ in thousands	12,419,400	16,871,200	15,397,500	15,456,100	15,290,500	15,082,400	14,988,800	14,662,200	14,465,500	14,376,200	14,050,100	14,487,700	14,506,200	15,712,700	15,622,100	14,847,500	14,273,100	13,736,300	13,729,500	13,710,800
Operating ROA		6.68%	4.83%	4.78%	4.40%	4.18%	4.17%	3.75%	3.33%	2.43%	1.33%	-0.25%	-3.01%	-3.72%	-1.69%	0.23%	3.71%	5.41%	6.49%	7.03%	7.02%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $830,230K ÷ $12,419,400K
= 6.68%

The operating return on assets (operating ROA) for Aramark Holdings has been fluctuating over the past several quarters. The trend shows an increase from negative values in Mar 31, 2021, to positive values in Dec 31, 2021. The operating ROA continued to rise through 2022, peaking at 6.68% in Dec 31, 2023. This indicates that Aramark Holdings has been improving its ability to generate operating profits from its assets.

The positive operating ROA values suggest that Aramark Holdings has been effectively utilizing its assets to generate operating income. However, it is important to note that the operating ROA has fluctuated over the periods, indicating potential volatility in the company’s operational performance.

Overall, the improving trend in the operating ROA demonstrates that Aramark Holdings has been focusing on enhancing operational efficiency and profitability in recent quarters. It would be important for the company to sustain this positive momentum and continue optimizing its asset utilization to drive sustainable long-term growth.