Business Description

Aramark Corporation provides facilities, food, and uniform services. The company was established in 1959 in Philadelphia, PA. It has three segments: Food and Support Services International (FSS International), Food and Support Services United States, and Uniform. FSS International provides food, refreshment, and specialized dietary support services.

It also offers housekeeping and facility maintenance to businesses, educational, healthcare, and leisure facilities. The FSS United States offers food, hospitality, and facility services to schools, colleges, universities, healthcare facilities, and businesses The Uniform segment includes rental, cleaning, sale, and maintenance of customized uniforms and other textiles on a contractual basis.

Key Financials

Revenue (US$ Mn):

• US$ 12,096 Mn was the annual revenue generated by Aramark Corporation in 2021
• Aramark Corporation’s annual revenue for 2020 was US$ 12,830 Mn, a -20.93% decrease from 2019
• From 2018’s annual revenues, Aramark Corporation registered a 2.77% increase in 2019, amounting to US$ 16,227 Mn
• Total revenue of US$ 15,790 Mn was generated in 2018 by Aramark Corporation

Operating Income (US$ Mn):

• Aramark Corporation’s operating income for 2021 was US$ 191 Mn, a -389.39% decrease from 2020
• The operating income generated by Aramark Corporation in 2020 was US$ -66 Mn
• At a -11.02% decrease, Aramark Corporation’s operating income of US$ 735 Mn was indexed in 2019
• Aramark Corporation generated an operating income of US$ 826 Mn in 2018

Net Income (US$ Mn):

• US$ -91 Mn was Aramark Corporation’s net income in 2021, a -80.3% decrease from 2020 figures
• Aramark Corporation indexed a -202.9% decrease in net incomes from 2019, amounting to US$ -462 Mn in 2020
• Aramark Corporation generated a net income of US$ 449 Mn in 2019
• A net income of US$ 568 Mn was indexed by Aramark Corporation in 2018

Operating Margin %:

• US$ -91 Mn was Aramark Corporation’s net income in 2021, a -80.3% decrease from 2020 figures
• Aramark Corporation indexed a -202.9% decrease in net incomes from 2019, amounting to US$ -462 Mn in 2020
• Aramark Corporation generated a net income of US$ 449 Mn in 2019
• A net income of US$ 568 Mn was indexed by Aramark Corporation in 2018

Gross Margin %:

• Aramark Corporation’s gross margin for 2021 was 9%, a 38.46% increase from 2020
• The gross margin generated by Aramark Corporation in 2020 was 7%
• At a -8.77% decrease, Aramark Corporation’s gross margin of 10% was indexed in 2019
• Aramark Corporation generated a gross margin of 11% in 2018

SWOT Analysis

Strengths

Diversified end markets

The company provides a wide range of services to different markets. Aramark offers food services, facility management, uniform, and career apparel to hospitals, school districts, colleges, universities, and other institutions. It also provides catering and event planning for national and state parks, correctional facilities, stadiums, and arenas as well as business and commercial clients around the globe.

The company’s Food and Support Services segment serves clients in education and healthcare, business and industry as well as sports, leisure, and corrections. The company’s education clients include higher education institutions and K-12 schools, as well as more than 1,500 schools, districts, colleges, and universities. Aramark has 185 clients in the healthcare sector.

The company also serves college and professional sports teams. It also provides services to national and state parks, resort operations, convention centers, civic centers, as well as other tourist attractions throughout the US. The company provides support services to around 430 clients in the facilities and other sectors.

The uniform segment of the company provides uniforms, work clothes, and other clothing to clients in the US, Puerto Rico, and Japan. This includes manufacturing, transport, construction, hotels, healthcare, and pharmaceutical industries. Because the company is present in many sectors, it can access a wide customer base and reduce vulnerability to adverse events in any given market.

Liquidity position

In FY2020, the company’s current ratio was 1.9, compared to 0.9 for FY2019. This could be due to an increase in total current assets which increased from US$2,658.3million in FY2019 to US$4,645.8million in FY2020.

Accrued expenses and accounts payable also contributed to the increase in the current ratio. The company’s liquidity has improved, which is a sign of its increasing ability to finance its day-to-day operations. This also helps it to seize growth opportunities in the market.

Get this premium content

The Premium data is Locked

Buy Now to Unlock Premium Data

Request Sample Data