ABM Industries Incorporated (ABM)
Fixed asset turnover
| Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 8,317,500 | 8,212,500 | 8,125,600 | 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 |
| Property, plant and equipment | US$ in thousands | 150,700 | 148,500 | 145,100 | 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 |
| Fixed asset turnover | 55.19 | 55.30 | 56.00 | 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 |
October 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $8,317,500K ÷ $150,700K
= 55.19
Fixed asset turnover measures how efficiently a company generates revenue from its fixed assets. A higher fixed asset turnover ratio indicates better utilization of fixed assets to generate revenue.
In the case of ABM Industries Incorporated, the fixed asset turnover ratio has fluctuated over the past few years, ranging from a low of 44.09 in January 2020 to a high of 65.92 in April 2022. The trend shows a general improvement in efficiency in utilizing fixed assets to generate revenue, with a peak in mid-2022. However, there has been some variability in the ratio in the more recent periods.
Overall, ABM Industries Incorporated has shown relatively high fixed asset turnover ratios, which suggests that the company is effective in using its fixed assets to generate revenue. It is important for the company to maintain its focus on efficient asset utilization to continue driving profitability and growth in the long term.
Peer comparison
Oct 31, 2024