Aramark Holdings (ARMK)

Financial leverage ratio

		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
Total assets	US$ in thousands	12,674,400	12,548,700	12,560,900	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
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
Financial leverage ratio		4.17	4.26	4.34	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

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 been fluctuating over the past quarters, ranging from 4.14 to 5.74. This ratio measures the extent to which the company relies on debt to finance its operations. A higher ratio indicates a greater reliance on debt, which can potentially magnify returns but also increase financial risk.

Aramark's financial leverage ratio has generally been on the higher side, exceeding 4.5 for most quarters, with some quarters showing ratios above 5. This suggests that the company has been more leveraged, with a significant portion of its assets funded by debt rather than equity.

It is important for investors and stakeholders to monitor the trend of this ratio over time, as a consistently high or increasing financial leverage ratio may signal potential concerns about the company's ability to meet debt obligations, especially during economic downturns or periods of financial stress.