Aramark Holdings (ARMK)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	12,674,400	12,548,700	12,560,900	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
Operating ROA		5.57%	6.10%	5.86%	5.66%	4.07%	3.95%	4.03%	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%

September 30, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $706,500K ÷ $12,674,400K
= 5.57%

Operating return on assets (ROA) is a key financial ratio that indicates how efficiently a company is generating operating income from its assets. The trend analysis of Aramark Holdings' operating ROA over the past few quarters shows fluctuations in performance.

The operating ROA has seen an upward trend from Dec 2019 to Sep 2020, peaking at 5.41% in Sep 2020. However, there was a sharp decline in operating ROA in the following quarters, reaching a negative figure of -3.72% in Dec 2020. The negative trend continued until Mar 2021, indicating challenges faced by the company during that period.

From Mar 2021 onwards, Aramark Holdings managed to improve its operating ROA, steadily increasing to 6.10% in Jun 2024. This improvement suggests that the company has been able to enhance its operational efficiency and generate higher operating income relative to its assets.

Overall, the analysis of operating ROA for Aramark Holdings reflects fluctuations in performance but shows a positive trend in recent quarters, indicating potential improvement in operational efficiency and profitability.