Aramark Holdings (ARMK)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 706,971 | 766,101 | 807,799 | 830,249 | 862,926 | 783,252 | 727,756 | 687,764 | 628,365 | 562,468 | 488,828 | 352,183 | 191,469 | -34,795 | -436,638 | -539,660 | -264,900 | 35,163 | 551,579 | 772,090 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,038,970 | 2,943,920 | 2,891,140 | 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 |
| 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% |
September 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $706,971K ÷ ($—K + $3,038,970K)
= 23.26%
The return on total capital for Aramark Holdings, as indicated by the provided data, has shown fluctuations over the past few years. The trend displays some volatility in performance. From December 2019 to September 2020, the return on total capital increased steadily from 1.21% to 22.37%, indicating an improvement in the company's ability to generate returns relative to its total capital.
However, there was a significant decline in performance from September 2020 to March 2021, where the return on total capital dropped from 22.37% to -16.64%, reflecting a period of underperformance and potential financial challenges. Subsequently, there was a gradual recovery, with the return on total capital improving to 27.94% by March 2024.
Overall, the return on total capital for Aramark Holdings has exhibited variability over the period analyzed, suggesting fluctuations in the company's efficiency in generating profits relative to the total capital employed. This metric is crucial for assessing the company's operational performance and efficiency in utilizing its resources to create value for stakeholders.
Peer comparison
Sep 30, 2024