Aramark Holdings (ARMK)

Financial leverage ratio

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	12,419,400	16,871,200	15,397,500	15,456,100	15,290,500	15,082,400	14,988,800	14,662,200	14,465,500	14,376,200	14,050,100	14,487,700	14,506,200	15,712,700	15,622,100	14,847,500	14,273,100	13,736,300	13,729,500	13,710,800
Total stockholders’ equity	US$ in thousands	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	3,320,050	3,285,920	3,233,680
Financial leverage ratio		4.36	4.54	4.34	4.86	4.86	4.98	5.14	5.05	5.20	5.28	5.23	5.52	5.42	5.74	5.40	4.68	4.14	4.14	4.18	4.24

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $12,419,400K ÷ $2,846,630K
= 4.36

The financial leverage ratio of Aramark Holdings has been fluctuating over the past few quarters, indicating changes in the company's debt utilization relative to its equity. The ratio has ranged from 4.14 to 5.74 during the period analyzed.

A higher financial leverage ratio suggests that the company relies more heavily on debt to finance its operations, which can amplify returns on equity but also increase financial risk due to higher interest payments. Conversely, a lower ratio indicates a more conservative capital structure with a greater reliance on equity financing.

In the most recent quarter, the financial leverage ratio stood at 4.36, which was a decrease from the previous quarter's ratio of 4.86. This decline may suggest a shift towards a slightly less leveraged financial position, potentially reducing the company's financial risk exposure.

Overall, the trend in Aramark Holdings' financial leverage ratio indicates fluctuations in the balance between debt and equity in the company's capital structure, reflecting changes in its financing strategy and risk profile. It is important for stakeholders to monitor these ratios to assess the company's financial health and risk tolerance.