Aramark Holdings (ARMK)
Return on total capital
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 706,500 | 1,292,980 | 637,478 | 282,247 | -258,379 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,038,970 | 3,712,720 | 3,029,640 | 2,722,870 | 2,735,990 |
| Return on total capital | 23.25% | 34.83% | 21.04% | 10.37% | -9.44% |
September 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $706,500K ÷ ($—K + $3,038,970K)
= 23.25%
Aramark Holdings' return on total capital has fluctuated over the past five years. The return on total capital was positive in all years except for 2020 when it was negative. The trend shows an improvement in performance from 2020 to 2023, with a significant increase in return on total capital from -9.44% in 2020 to 34.83% in 2023. However, there was a slight decrease in the return on total capital in 2024 compared to 2023.
Overall, the return on total capital for Aramark Holdings has been relatively favorable in recent years, indicating the company's ability to generate profits from both equity and debt capital. The positive trend in return on total capital suggests improved efficiency in capital utilization and profitability over time.
Peer comparison
Sep 30, 2024