Aramark Holdings (ARMK)

Financial leverage ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Total assets	US$ in thousands	16,871,200	15,082,400	14,376,200	15,712,700	13,736,300
Total stockholders’ equity	US$ in thousands	3,712,720	3,029,640	2,722,870	2,735,990	3,320,050
Financial leverage ratio		4.54	4.98	5.28	5.74	4.14

September 30, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $16,871,200K ÷ $3,712,720K
= 4.54

The financial leverage ratio of Aramark Holdings has shown a declining trend over the past five years, decreasing from 5.74 in 2020 to 4.54 in 2023. This indicates a relative reduction in the company's reliance on debt financing to fund its operations and investments. A lower financial leverage ratio suggests a healthier balance sheet structure and lower financial risk, as the company has less debt compared to its equity. However, it's important to note that the ratio fluctuated during these years, possibly reflecting variations in the company's debt levels and equity positions. Overall, the decreasing trend in the financial leverage ratio of Aramark Holdings indicates a positive shift towards a more conservative capital structure.