Aramark (LTS:0HHB) Inventory Turnover : 10.24 (As of Mar. 2024)

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What is Aramark Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Aramark's Cost of Goods Sold for the three months ended in Mar. 2024 was $3,869 Mil. Aramark's Average Total Inventories for the quarter that ended in Mar. 2024 was $378 Mil. Aramark's Inventory Turnover for the quarter that ended in Mar. 2024 was 10.24.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Aramark's Days Inventory for the three months ended in Mar. 2024 was 8.91.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Aramark's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.09.

Aramark Inventory Turnover Historical Data

The historical data trend for Aramark's Inventory Turnover 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.

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Aramark Inventory Turnover Chart

Aramark Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Inventory Turnover

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25.58

28.29

25.92

30.60

30.13

Aramark Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Inventory Turnover	Get a 7-Day Free Trial															6.14	7.17	7.48	8.55	10.24

Aramark Inventory Turnover Calculation

Aramark's Inventory Turnover for the fiscal year that ended in Sep. 2023 is calculated as

	Inventory Turnover (A: Sep. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Sep. 2023 )	/ (	(Total Inventories (A: Sep. 2022 )	+	Total Inventories (A: Sep. 2023 ))	/	count )
=	17037.797	/ (	(552.386	+	578.427)	/	2 )
=	17037.797	/	565.4065
=	30.13

Aramark's Inventory Turnover for the quarter that ended in Mar. 2024 is calculated as

	Inventory Turnover (Q: Mar. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2024 )	/ (	(Total Inventories (Q: Dec. 2023 )	+	Total Inventories (Q: Mar. 2024 ))	/	count )
=	3869.152	/ (	(367.614	+	388.279)	/	2 )
=	3869.152	/	377.9465
=	10.24

Aramark (LTS:0HHB) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Aramark's Days Inventory for the three months ended in Mar. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2024 )	/	Cost of Goods Sold (Q: Mar. 2024 )	*	Days in Period
	=	377.9465	/	3869.152	*	365 / 4
	=	8.91

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Aramark's Inventory to Revenue for the quarter that ended in Mar. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	377.9465	/	4199.913
	=	0.09

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Aramark Inventory Turnover Related Terms

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Aramark (LTS:0HHB) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Aramark (LTS:0HHB) » Definitions » Inventory Turnover

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ARMK:USA 0AK:Germany

Address

2400 Market Street, Philadelphia, PA, USA, 19103

Website

https://www.aramark.com

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.

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