Aramark cash flow to debt ratio of 16.10% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Aramark's free cash flow has increased 51.95% from $299.09M last year to $454.46M, signaling increasing performance

Aramark's debt to equity ratio is 0.11, which means that the company's assets are healthy financed, signaling financial stability.

Aramark's debt has decreased relative to shareholder equity from 1.83 last year to 0.11 today, signaling strengthened financials

Aramark has a net debt to EBITDA ratio of 4.07x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

Aramark's interest coverage ratio of 2.61 indicates that earnings with margin can cover interest payments on company debt

Aramark's profit margin has increased (27.89%) in the last year from 1.51% to 1.93%, signaling increasing performance

Aramark's short-term liabilities of $3.55B exceed its short-term assets of $3.52B, signaling financial risk

Aramark's return on assets of 2.87% is lower than the 5.00% threshold, indicating inefficient asset utilization

Aramark's return on equity of 11.75%, is lower than 15.00%, indicating bad performance

Aramark's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Aramark had positive net income in 4 out of 5 years, indicating stable and consistent earnings

Aramark has positive free cash flow, indicating the company generates cash after capital expenditures

Aramark has a free cash flow yield of 3.10%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Aramark's yearly earnings has increased 24.33% since last year from $262.52M to $326.39M, signaling increasing performance

Aramark's yearly revenue has increased 6.35% since last year from $17.40B to $18.51B, signaling increasing performance

ROIC 6.18% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Aramark's 3-year revenue CAGR of 10.58% is positive, indicating growing revenue over the past 3 years

Aramark had revenue growth in 4 out of 5 years, indicating consistent revenue performance

Aramark had positive ROE in 4 out of 5 years, indicating consistent and reliable returns on equity

Aramark has insufficient data to evaluate this check.

Aramark has an earnings yield of 2.61%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Aramark is overvalued relative to its fair value price of 13.92 based on EBITDA multiple model

Aramark has an EV/EBITDA ratio of 15.80x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Aramark is overvalued relative to its fair value price of 55.43 based on Earnings Fair Value model

Aramark had non-positive diluted EPS five years ago; the PEG ratio is not meaningful and the check fails.

Aramark has a price-to-book ratio of 4.32x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Aramark has a price-to-sales ratio of 0.74x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue