Aramark Holdings (ARMK)

Return on total capital

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	1,292,980	637,478	282,247	-258,379	909,067
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	3,712,720	3,029,640	2,722,870	2,735,990	3,320,050
Return on total capital		34.83%	21.04%	10.37%	-9.44%	27.38%

September 30, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,292,980K ÷ ($—K + $3,712,720K)
= 34.83%

Aramark Holdings' return on total capital has shown significant variability over the past five years. The return on total capital increased from -9.44% in 2020 to 34.83% in 2023, indicating a significant improvement in the company's ability to generate profit relative to its total capital employed. This improvement suggests that Aramark Holdings has become more efficient in utilizing its capital to generate returns for its investors.

The return on total capital in 2023 at 34.83% is substantially higher than the levels seen in the preceding years, such as 21.04% in 2022 and 10.37% in 2021, further highlighting the improved performance of the company. In 2019, the return on total capital was 27.38%, indicating that the current level of profitability in 2023 surpasses the performance from four years ago.

Overall, the trend in Aramark Holdings' return on total capital demonstrates a positive trajectory, reflecting improved operational efficiency and profitability over the past five years. This upward trend could indicate enhanced strategic decision-making, cost management, and capital allocation within the company.