Aramark Holdings (ARMK)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	628,493	674,108	544,472	246,317	226,024	194,484	154,117	146,345	33,021	-90,833	-274,852	-563,849	-688,533	-461,529	-227,382	112,013	343,626	448,547	538,445	528,067
Total stockholders’ equity	US$ in thousands	2,846,630	3,712,720	3,551,270	3,183,270	3,143,260	3,029,640	2,915,260	2,904,200	2,784,460	2,722,870	2,686,220	2,623,540	2,677,140	2,735,990	2,895,340	3,169,440	3,451,580	3,320,050	3,285,920	3,233,680
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%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $628,493K ÷ $2,846,630K
= 22.08%

The return on equity (ROE) for Aramark Holdings has shown a fluctuating trend over the past few quarters. In the most recent quarter, the ROE was 22.08%, indicating that the company generated a return of 22.08% on shareholders' equity during that period. This represents an improvement compared to the previous quarter's ROE of 18.16%.

The company's ROE has been gradually increasing since the beginning of the year, with successive improvements in each quarter. However, it is important to note that the ROE was relatively low in the first quarter of the year at 7.74%. This indicates that Aramark Holdings faced challenges in generating returns for shareholders during that period.

Looking at the historical data, there have been quarters in the past where the company experienced negative ROE, with the lowest reported in the first quarter of 2021 at -25.72%. This suggests that Aramark Holdings faced significant difficulties in generating profits relative to shareholders' equity during that period.

Overall, the recent uptick in ROE is a positive sign, indicating improved profitability and efficiency in utilizing shareholders' equity. It is important for the company to continue monitoring and improving its ROE to ensure sustainable and healthy returns for its investors.