Aramark Holdings (ARMK)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 2.61% | 4.34% | 8.23% | 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% |
| 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% |
| Pretax margin | 2.12% | 2.36% | 4.24% | 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% |
| Net profit margin | 1.52% | 1.92% | 3.27% | 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% |
Looking at Aramark Holdings' profitability ratios over the past few quarters, we observe fluctuations in its performance.
1. Gross Profit Margin: Aramark's gross profit margin has shown variability, ranging from negative figures to single-digit positive percentages. The trend indicates inconsistent cost management and pricing strategies affecting the company's ability to generate profits from its core operations.
2. Operating Profit Margin: The operating profit margin has also experienced fluctuations, though generally staying within a narrow range compared to the gross profit margin. This suggests that while the company may be controlling its operating expenses more effectively, there are still challenges in improving profitability at the operational level.
3. Pretax Margin: Aramark's pretax margin has similarly fluctuated, with occasional dips into negative territory. This indicates varying levels of success in managing interest expenses and non-operating income, potentially impacting the company's overall financial health and tax obligations.
4. Net Profit Margin: The net profit margin reflects the company's bottom-line profitability after accounting for all expenses and taxes. Aramark has seen fluctuations in this metric as well, with occasional negative margins. This indicates challenges in generating consistent profits from its operations and highlights the need for ongoing efficiency improvements.
Overall, Aramark Holdings' profitability ratios reveal a mixed performance in terms of generating profits from its core business activities. The company may need to focus on enhancing cost controls, pricing strategies, and operational efficiency to improve its profitability in the future.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 2.07% | 2.75% | 4.98% | 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% |
| Return on total capital | 23.26% | 26.02% | 27.94% | 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% |
| Return on equity (ROE) | 8.64% | 11.74% | 21.65% | 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% |
Aramark Holdings' profitability ratios have shown varying trends over the past few quarters. The Operating return on assets (Operating ROA) has ranged from 3.33% to 6.10%, with a notable improvement in recent quarters, indicating that the company's operating efficiency and asset utilization have been on an upward trajectory.
The Return on assets (ROA) has also shown improvement, with values ranging from -1.96% to 5.06%. This ratio measures the overall profitability of the company relative to its total assets, with the positive trend suggesting that Aramark Holdings has been successful in generating profits from its assets.
The Return on total capital has displayed a similar positive trend, with values ranging from -20.16% to 29.17%. This ratio reflects the company's ability to generate returns for both equity and debt holders, indicating that Aramark Holdings has been effectively utilizing its total capital to drive profitability.
Lastly, the Return on equity (ROE) has shown improvement as well, ranging from -25.72% to 22.08%. This ratio demonstrates how efficiently the company is generating profits from shareholders' equity, with the recent positive values indicating a strong performance in utilizing equity to drive returns for shareholders.
Overall, the profitability ratios of Aramark Holdings have been on an upward trend, signaling improved operational efficiency and profitability levels over the analyzed periods.