Aramark Holdings (ARMK)
Pretax margin
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 851,722 | 255,945 | -131,466 | -647,813 | 556,255 |
| Revenue | US$ in thousands | 19,257,800 | 15,941,600 | 11,818,400 | 12,437,600 | 16,025,900 |
| Pretax margin | 4.42% | 1.61% | -1.11% | -5.21% | 3.47% |
September 30, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $851,722K ÷ $19,257,800K
= 4.42%
The pretax margin of Aramark Holdings has exhibited fluctuations over the past five years. In Sep 2023, the pretax margin improved significantly to 4.42%, showing a positive trend compared to the previous year's 1.61%. This indicates that the company has been able to effectively control its expenses relative to its revenue, resulting in higher profitability before taxes.
In the preceding years, the pretax margin was negative, reaching its lowest point in Sep 2020 at -5.21%. This suggests that during that period, the company's expenses outpaced its revenue, leading to unprofitability before taxes.
However, the positive pretax margin in Sep 2023 demonstrates a turnaround in the company's financial performance, reflecting a more efficient management of costs and potentially improved revenue generation strategies. It will be important to monitor future financial statements to assess the sustainability of this positive trend in the pretax margin.
Peer comparison
Sep 30, 2023