Aramark Holdings (ARMK)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 4.17 | 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 |
The solvency ratios of Aramark Holdings have remained relatively stable over the past few quarters. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have consistently remained at 0.00, indicating that the company has not utilized debt in its capital structure.
However, the financial leverage ratio has fluctuated slightly, ranging from 4.14 to 5.74 over the past eight quarters. This ratio measures the extent to which the company relies on debt to finance its operations. A higher financial leverage ratio indicates a higher degree of financial risk due to the increased reliance on debt.
Overall, Aramark Holdings appears to maintain a conservative capital structure with a low level of debt compared to its assets and capital. This suggests that the company has a relatively strong solvency position and may have a lower financial risk profile.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 1.93 | 1.93 | 1.89 | 1.83 | 1.96 | 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 |
Interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. A higher ratio indicates that the company is more capable of servicing its debt.
Looking at Aramark Holdings' interest coverage ratio over the past few quarters, it shows some fluctuations. The ratio has been generally low, below 2, indicating challenges in meeting its interest payments with its operating earnings. In the last two quarters of 2024 and the first quarter of 2023, the ratio improved slightly but remained below 2, indicating that the company's ability to cover its interest expenses was still limited.
The most concerning periods were at the end of 2021 and in 2022, where the interest coverage ratio dropped significantly, even becoming negative. This could imply that the company was struggling to generate enough earnings to cover its interest payments during those periods, posing a potential risk to its financial sustainability.
Overall, the trend in Aramark Holdings' interest coverage ratio indicates a fluctuating but generally low ability to cover its interest expenses with its operating earnings. This suggests potential financial risk related to the company's debt obligations and highlights the importance of monitoring its financial performance closely.