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Aramark (Aramark) EBIT : $1,260 Mil (TTM As of Dec. 2023)


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What is Aramark EBIT?

Aramark's earnings before interest and taxes (EBIT) for the three months ended in Dec. 2023 was $167 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2023 was $1,260 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Aramark's annualized ROC % for the quarter that ended in Dec. 2023 was 3.11%. Aramark's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 25.28%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Aramark's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 8.71%.


Aramark EBIT Historical Data

The historical data trend for Aramark's EBIT 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 EBIT Chart

Aramark Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 908.98 -258.29 280.86 637.17 1,292.41

Aramark Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
EBIT 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 151.69 181.98 579.35 331.42 166.95

Competitive Comparison of Aramark's EBIT

For the Specialty Business Services subindustry, Aramark's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Aramark's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Aramark's EV-to-EBIT falls into.



Aramark EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,260 Mil.

* 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) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Aramark's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

ROC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=667.8 * ( 1 - 45.57% )/( (13680.298 + 9726.129)/ 2 )
=363.48354/11703.2135
=3.11 %

where

Invested Capital(Q: Sep. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=16871.241 - 3000.883 - ( 1963.139 - max(0, 5029.967 - 5220.027+1963.139))
=13680.298

Invested Capital(Q: Dec. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=12419.449 - 2397.723 - ( 295.597 - max(0, 2489.414 - 3167.42+295.597))
=9726.129

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

Aramark's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2023 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2023  Q: Dec. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=667.8/( ( (2720.661 + max(-104.931, 0)) + (2088.44 + max(474.1, 0)) )/ 2 )
=667.8/( ( 2720.661 + 2562.54 )/ 2 )
=667.8/2641.6005
=25.28 %

where Working Capital is:

Working Capital(Q: Sep. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2363.698 + 578.427 + 314.763) - (3000.883 + 360.936 + 0)
=-104.931

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2198.781 + 367.614 + 305.428) - (2397.723 + 0 + 4.5474735088646E-13)
=474.1

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Aramark's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Dec. 2023 )
=1259.71/14455.865
=8.71 %

* 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 EBIT Related Terms

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


Aramark (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