Aramark Holdings (ARMK)

Solvency ratios

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
Debt-to-assets ratio 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Debt-to-capital ratio 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Debt-to-equity ratio 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
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

Based on the solvency ratios of Aramark Holdings, the company has consistently maintained a debt-free capital structure over the periods indicated. The debt-to-assets, debt-to-capital, and debt-to-equity ratios all show as 0.00, suggesting that the company does not have any outstanding debt in relation to its assets, capital, or equity.

The financial leverage ratio, however, has fluctuated over the periods, indicating changes in the company's financial leverage. The ratio has ranged from 4.14 to 5.74, with the highest leverage seen in March 2021 and the lowest in March 2020. This implies that the company has been utilizing a varying level of financial leverage to fund its operations and investments, with a peak in March 2021 and a subsequent decrease in leverage in March 2020.

Overall, the consistently low debt ratios suggest that Aramark Holdings has a strong solvency position with minimal reliance on debt for its capital structure. The fluctuations in the financial leverage ratio indicate changes in the company's leverage strategy over the periods studied.


Coverage ratios

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
Interest coverage 1.83 1.97 1.80 1.76 1.77 1.65 1.53 1.26 0.89 0.48 -0.05 -0.75 -1.10 -0.68 0.39 3.24 3.05 2.66 2.83 2.75

Based on the interest coverage ratios of Aramark Holdings over the past few quarters, the company's ability to cover its interest expenses with its earnings has been fluctuating. The interest coverage ratio measures the company's ability to meet its interest obligations on its debt payments. An interest coverage ratio of less than 1 indicates that the company is not generating enough operating income to cover its interest expenses.

Looking at the trend, the interest coverage ratio has been variable, ranging from negative values (-0.75 in March 2021) to positive values (3.24 in March 2020). This signifies the company's inconsistent performance in meeting its interest obligations.

The downward trend in interest coverage from December 2020 to March 2021 suggests that the company may have faced challenges in generating sufficient earnings to cover interest expenses during that period. However, there has been some improvement in the recent quarters with interest coverage ratios hovering around 1.80 to 1.97, albeit still relatively low.

It is essential for investors and creditors to closely monitor Aramark Holdings' interest coverage ratio to assess the company's ability to handle its debt obligations and evaluate its financial health and stability. Further analysis of the company's financial statements and operational performance would provide a more comprehensive view of the factors impacting its interest coverage ratio.