ABM Industries Incorporated (ABM)
Fixed asset turnover
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,014,100 | 7,765,500 | 6,200,000 | 5,943,000 | 6,447,500 |
| Property, plant and equipment | US$ in thousands | 131,500 | 125,400 | 111,900 | 133,700 | 150,300 |
| Fixed asset turnover | 60.94 | 61.93 | 55.41 | 44.45 | 42.90 |
October 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $8,014,100K ÷ $131,500K
= 60.94
The fixed asset turnover ratio measures a company's ability to generate sales revenue from its investment in fixed assets. ABM Industries Inc.'s fixed asset turnover has shown a generally increasing trend over the past five years, indicating improved efficiency in utilizing its fixed assets to generate sales. The ratio rose from 43.24 in 2019 to 61.57 in 2023. This suggests the company has been more effective in utilizing its fixed assets to generate sales over time. However, it is important to note that a very high fixed asset turnover ratio may also indicate aggressive asset management or possibly over-utilization of fixed assets. Therefore, further analysis of the company's capital structure and business operations would be necessary to better understand the drivers behind this trend.
Peer comparison
Oct 31, 2023