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ARMK (Aramark) Cash Conversion Cycle : 25.33 (As of Sep. 2024)


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What is Aramark Cash Conversion Cycle?

Cash Conversion Cycle is one of several measures of management effectiveness. It equals Days Sales Outstanding + Days Inventory - Days Payable.

Aramark's Days Sales Outstanding for the three months ended in Sep. 2024 was 44.38.
Aramark's Days Inventory for the three months ended in Sep. 2024 was 8.6.
Aramark's Days Payable for the three months ended in Sep. 2024 was 27.65.
Therefore, Aramark's Cash Conversion Cycle (CCC) for the three months ended in Sep. 2024 was 25.33.


Aramark Cash Conversion Cycle Historical Data

The historical data trend for Aramark's Cash Conversion Cycle can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Aramark Cash Conversion Cycle Chart

Aramark Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 33.66 35.82 33.48 26.50 21.24

Aramark Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Cash Conversion Cycle Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 31.69 25.15 31.06 30.52 25.33

Competitive Comparison of Aramark's Cash Conversion Cycle

For the Specialty Business Services subindustry, Aramark's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Aramark's Cash Conversion Cycle Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Aramark's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Aramark's Cash Conversion Cycle falls into.



Aramark Cash Conversion Cycle Calculation

Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.

Cash Conversion Cycle is one of several measures of management effectiveness.

Aramark's Cash Conversion Cycle for the fiscal year that ended in Sep. 2024 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=42.66+9.04-30.46
=21.24

Aramark's Cash Conversion Cycle for the quarter that ended in Sep. 2024 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=44.38+8.6-27.65
=25.33

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Aramark  (NYSE:ARMK) Cash Conversion Cycle Explanation

Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.


Be Aware

CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.

The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.


Aramark Cash Conversion Cycle Related Terms

Thank you for viewing the detailed overview of Aramark's Cash Conversion Cycle provided by GuruFocus.com. Please click on the following links to see related term pages.


Aramark Business Description

Traded in Other Exchanges
Address
2400 Market Street, Philadelphia, PA, USA, 19103
Aramark provides food, facilities, and uniform services to a variety of clients and institutions. The majority of company revenue comes from its North American food and support services segment. Smaller but substantial segments include food and support services international, food and support services united states and uniform and career apparel. The food and support services segments provide food for school districts; colleges; healthcare facilities; correctional institutions; and business, sports, and entertainment venues. The uniform segment rents, delivers, cleans, and maintains work clothes and ancillary items like towels and mats to customers in North America and Japan. The company has hundreds of service locations and distribution centers across the United States and Canada.
Executives
Lauren A Harrington officer: SVP and General Counsel ARAMARK, 2400 MARKET STREET, PHILADELPHIA PA 19103
Marc A Bruno officer: COO, U.S. Food & Facilities C/O UNITED RENTALS, INC., 100 FIRST STAMFORD PLACE, SUITE 700, STAMFORD CT 06902
Kevin Wills director 750 LAKESHORE PARKWAY, BIRMINGHAM AL 35211
Abigail Charpentier officer: SVP & Chief HR Officer 2400 MARKET STREET, PHIADELPHIA PA 19103
Lynn Mckee officer: See Remarks
Patricia E Lopez director 333 LUDLOW ST, STAMFORD CT 06902
Kenneth M Keverian director IBM CORPORATION, ONE NEW ORCHARD ROAD, ARMONK NY 10504
Christopher T. Schilling officer: SVP, Controller and CAO 2400 MARKET STREET, PHILADELPHIA PA 19103
Bridgette P Heller director TECH DATA CORPORATION, 5350 TECH DATA DRIVE, CLEARWATER FL 33760
Keith Bethel officer: Chief Growth Officer C/O ARAMARK, 2400 MARKET STREET, PHILADELPHIA PA 19103
Thomas Gerard Ondrof officer: Executive VP and CFO C/O PERFORMANCE FOOD GROUP COMPANY, 12500 WEST CREEK PARKWAY, RICHMOND VA 23238
Stephen I Sadove director
Karen Marie King director C/O ARAMARK, 2400 MARKET STREET, PHILADELPHIA PA 19103
Greg Creed director 1441 GARDINER LANE, LOUISVILLE KY 40213
Mantle Ridge Lp other: Director by deputization 712 FIFTH AVENUE, SUITE 17F, NEW YORK NY 10019