Aramark Holdings (ARMK)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 8.58% | 9.07% | 8.40% | 4.41% | 4.36% | 4.31% | 3.61% | 4.33% | 3.63% | 2.63% | 1.86% | -3.44% | -2.83% | -0.05% | 2.87% | 5.83% | 6.25% | 7.78% | 8.30% | 9.90% |
| Operating profit margin | 4.24% | 4.09% | 3.93% | 3.92% | 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% | 5.44% | 5.91% | 5.91% |
| Pretax margin | 4.11% | 4.28% | 3.92% | 1.86% | 1.85% | 1.61% | 1.30% | 1.28% | 0.28% | -1.11% | -3.41% | -8.35% | -8.63% | -5.21% | -2.30% | 1.28% | 2.72% | 3.40% | 3.83% | 3.78% |
| Net profit margin | 3.21% | 3.38% | 2.91% | 1.42% | 1.36% | 1.22% | 1.02% | 1.04% | 0.25% | -0.77% | -2.50% | -5.63% | -6.30% | -3.71% | -1.61% | 0.70% | 2.12% | 2.74% | 3.30% | 3.24% |
Aramark Holdings' profitability ratios have varied over the past few quarters. The gross profit margin has fluctuated, ranging from as low as -3.44% in March 2021 to a peak of 9.07% in September 2023. This indicates changes in the company's ability to generate profit from its core operations.
The operating profit margin has also shown fluctuations but generally trended upwards, with the highest margin of 4.24% achieved in December 2023. This suggests improvements in operational efficiency and cost management over time.
The pretax margin, reflecting the company's profitability before taxes, displayed a similar trend, with fluctuations but a general improvement over the periods analyzed. The highest pretax margin was 4.28% in September 2023.
The net profit margin, which represents the company's profitability after all expenses, also demonstrated variability but overall showed an upward trend, reaching a peak of 3.38% in September 2023. This indicates that Aramark Holdings has been able to control expenses and improve its bottom line profitability.
Overall, Aramark Holdings has shown some improvements in profitability ratios over the periods analyzed, which could be attributed to better cost management, operational efficiency, and strategic decision-making. However, the company still faces challenges in maintaining consistent profitability levels, as evidenced by the fluctuations in the margins.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 5.06% | 4.00% | 3.54% | 1.59% | 1.48% | 1.29% | 1.03% | 1.00% | 0.23% | -0.63% | -1.96% | -3.89% | -4.75% | -2.94% | -1.46% | 0.75% | 2.41% | 3.27% | 3.92% | 3.85% |
| Return on total capital | 29.17% | 23.24% | 22.06% | 22.86% | 21.88% | 20.74% | 19.29% | 16.83% | 12.65% | 7.03% | -1.30% | -16.64% | -20.16% | -9.68% | 1.21% | 17.40% | 22.37% | 26.84% | 29.36% | 29.77% |
| Return on equity (ROE) | 22.08% | 18.16% | 15.33% | 7.74% | 7.19% | 6.42% | 5.29% | 5.04% | 1.19% | -3.34% | -10.23% | -21.49% | -25.72% | -16.87% | -7.85% | 3.53% | 9.96% | 13.51% | 16.39% | 16.33% |
Aramark Holdings' profitability ratios exhibit varying trends over the past few quarters.
1. Operating return on assets (Operating ROA) has been on an upward trend, reflecting the company's ability to generate operating income from its assets. This ratio increased from 4.17% in Sep 2022 to 6.68% in Dec 2023, indicating improved operational efficiency.
2. Return on assets (ROA) also showed improvement from Sep 2022 to Dec 2023, indicating that the company is generating more profit relative to its total assets. The ratio increased from 1.29% in Sep 2022 to 5.06% in Dec 2023.
3. Return on total capital demonstrates a positive trend, increasing from -20.16% in Mar 2021 to 29.17% in Dec 2023. This indicates that the company is effectively utilizing its total capital to generate returns for its stakeholders.
4. Return on equity (ROE) has shown improvements over the quarters, increasing from 6.42% in Sep 2022 to 22.08% in Dec 2023. This suggests that Aramark Holdings is effectively generating profits for its shareholders based on the equity invested in the company.
Overall, the profitability ratios of Aramark Holdings have displayed positive trends and improvements in recent quarters, indicating enhanced operational efficiency and profitability.