How do you interpret food and support services - united states — goodwill impairment?

An increase signals that the segment's long-term growth prospects have deteriorated or that past acquisitions were overvalued.

How does food and support services - united states — goodwill impairment compare across companies?

Comparable to goodwill impairment charges reported by diversified service conglomerates under GAAP or IFRS standards.

Aramark ARMK Food and Support Services - United States — Goodwill impairment

Discontinued — last reported Q4 '20

Similar metrics at other companies

HRLFoodservice — Goodwill and Intangible Impairment

$0—

GISNorth America Foodservice — Goodwill Impairment

$0—

SJMU.S.Retail Consumer Foods — Goodwill impairment charges

$24.48M—

STEUNITED STATES — Goodwill, Impairment Loss

$110.41M—

SSD

SSDNorth America — Goodwill Impairment

$0—

HRLRetail — Goodwill and Intangible Impairment

$17.69M—

Other financials

Income statement

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Revenue$4.9B+14.7%

Gross profit$426.4M+18.6%

Operating income$219.7M+26.2%

Net income$102.0M+64.8%

EPS (diluted)$0.38+65.2%

Balance sheet

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Cash & equivalents$540.8M-44.5%

Total debt$6.5B-10.8%

Total equity$3.3B+8.6%

Total assets$13.8B+2.6%

Cash flow

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Operating cash flow-$782.2M-33.2%

CapEx$101.3M-12.5%

Free cash flow-$904.4M-27.9%

Valuation

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Market cap$14.02B+37.3%

Enterprise value$20B+19.3%

P/E39.3×+9.9×

P/S0.7×+0.1×

Profitability

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Gross margin8.4%-0.1pp

Operating margin4.3%-0.1pp

Net margin1.8%-0.1pp

FCF margin1.2%—

Returns & leverage

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Return on equity11.3%-0.4pp

Debt / equity2×-0.4×

Current ratio1.2×0.0×

Where this comes from

Reported directly by Aramark in its filing.

Tagged under the XBRL concept us-gaap:GoodwillImpairmentLoss.

The official record: Aramark’s 10-K, filed November 24, 2020, on SEC EDGAR. View the filing →

Questions, answered.

What does food and support services - united states — goodwill impairment mean?: A non-cash charge reflecting a decrease in the value of acquired businesses within the U.S. segment.
How do you interpret food and support services - united states — goodwill impairment?: An increase signals that the segment's long-term growth prospects have deteriorated or that past acquisitions were overvalued.
How does food and support services - united states — goodwill impairment compare across companies?: Comparable to goodwill impairment charges reported by diversified service conglomerates under GAAP or IFRS standards.