Aramark Holdings (ARMK)

Financial leverage ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Total assets	US$ in thousands	12,674,400	16,871,200	15,082,400	14,376,200	15,712,700
Total stockholders’ equity	US$ in thousands	3,038,970	3,712,720	3,029,640	2,722,870	2,735,990
Financial leverage ratio		4.17	4.54	4.98	5.28	5.74

September 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $12,674,400K ÷ $3,038,970K
= 4.17

The financial leverage ratio of Aramark Holdings has shown a declining trend over the past five years, decreasing from 5.74 in Sep 30, 2020 to 4.17 in Sep 30, 2024. This indicates that the company has been reducing its financial leverage over time, which could be a positive sign for investors and stakeholders. A lower financial leverage ratio implies that the company is relying less on debt to finance its operations, reducing the risk of financial distress in times of economic volatility. It suggests that Aramark Holdings may have improved its financial stability and solvency by reducing its debt levels relative to its equity. Overall, the decreasing trend in the financial leverage ratio reflects a potentially healthier financial position for Aramark Holdings.