ABM Industries Incorporated (ABM)
Fixed asset turnover
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 8,090,900 | 8,014,100 | 7,936,900 | 7,879,900 | 7,807,000 | 7,765,500 | 7,459,900 | 7,046,400 | 6,646,000 | 6,199,900 | 5,994,900 | 5,838,400 | 5,834,300 | 5,953,100 | 6,116,500 | 6,371,200 | 6,467,600 | 6,459,300 | 6,460,100 | 6,530,000 |
| Property, plant and equipment | US$ in thousands | 142,100 | 131,500 | 126,100 | 126,100 | 127,800 | 125,400 | 115,200 | 106,900 | 110,900 | 111,900 | 111,800 | 124,300 | 127,300 | 133,700 | 137,100 | 140,900 | 146,700 | 150,300 | 147,100 | 143,600 |
| Fixed asset turnover | 56.94 | 60.94 | 62.94 | 62.49 | 61.09 | 61.93 | 64.76 | 65.92 | 59.93 | 55.41 | 53.62 | 46.97 | 45.83 | 44.53 | 44.61 | 45.22 | 44.09 | 42.98 | 43.92 | 45.47 |
January 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $8,090,900K ÷ $142,100K
= 56.94
The fixed asset turnover of ABM Industries Inc. has been fluctuating over the past few quarters. The ratio indicates how efficiently the company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio suggests that the company is generating more revenue per dollar of fixed assets.
In the most recent quarter, Q1 2024, the fixed asset turnover was 57.53, which decreased from the previous quarter's value of 61.57 in Q4 2023. This decrease may indicate a slight decrease in efficiency in utilizing fixed assets to generate revenue.
Looking at the trend over the last eight quarters, the fixed asset turnover ratio has been relatively high, ranging from 61.52 to 66.16. This suggests that ABM Industries Inc. has been effectively utilizing its fixed assets to generate revenue during this period.
It is important for the company to monitor its fixed asset turnover ratio to ensure it remains at optimal levels. Any significant decreases in the ratio could indicate potential inefficiencies in asset utilization, while increases could indicate improved efficiency and effectiveness in generating revenue from fixed assets.
Peer comparison
Jan 31, 2024