ABM Industries Incorporated (ABM)
Fixed asset turnover
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,359,400 | 8,014,100 | 7,765,500 | 6,200,000 | 5,943,000 |
| Property, plant and equipment | US$ in thousands | 150,700 | 131,500 | 125,400 | 111,900 | 133,700 |
| Fixed asset turnover | 55.47 | 60.94 | 61.93 | 55.41 | 44.45 |
October 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $8,359,400K ÷ $150,700K
= 55.47
The fixed asset turnover ratio measures how efficiently a company utilizes its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates that the company is generating more revenue relative to its investment in fixed assets.
In the case of ABM Industries Incorporated, the fixed asset turnover ratio has shown a fluctuating trend over the past five years. In 2020, the ratio was 44.45, which increased to 55.41 in 2021, demonstrating an improvement in asset utilization efficiency. Subsequently, the ratio further increased to 61.93 in 2022, reflecting a more efficient use of fixed assets to generate revenue.
However, there was a slight decline in the fixed asset turnover ratio to 60.94 in 2023, followed by a more significant decrease to 55.47 in 2024. Despite the recent declines, ABM Industries Incorporated still maintains a relatively high level of fixed asset turnover compared to previous years.
Overall, while the company's fixed asset turnover ratio has shown some variability, it remains at a relatively high level, indicating effective management of fixed assets to generate revenue. Additional analysis may be required to understand the underlying factors contributing to the fluctuations in the ratio and to assess the long-term sustainability of the company's asset utilization efficiency.
Peer comparison
Oct 31, 2024