ABM Industries Incorporated (ABM)
Payables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 8,152,200 | 7,978,400 | 7,810,900 | 7,765,200 | 7,689,600 | 7,634,000 | 7,617,400 | 7,548,800 | 7,457,600 | 7,165,200 | 6,845,000 | 6,469,400 | 6,021,800 | 5,791,000 | 5,540,100 | 5,706,600 | 5,893,500 | 6,114,000 | 6,403,200 | 6,329,700 |
| Payables | US$ in thousands | 324,300 | 278,700 | 253,600 | 243,500 | 299,100 | 304,400 | 263,600 | 279,900 | 315,500 | 299,800 | 263,300 | 261,500 | 289,400 | 224,800 | 222,900 | 217,500 | 273,300 | 221,900 | 249,400 | 242,600 |
| Payables turnover | 25.14 | 28.63 | 30.80 | 31.89 | 25.71 | 25.08 | 28.90 | 26.97 | 23.64 | 23.90 | 26.00 | 24.74 | 20.81 | 25.76 | 24.85 | 26.24 | 21.56 | 27.55 | 25.67 | 26.09 |
October 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $8,152,200K ÷ $324,300K
= 25.14
The payables turnover ratio for ABM Industries Incorporated has shown some fluctuations over the past few years. The ratio indicates how efficiently the company is managing its accounts payable by measuring how many times a company pays off its average accounts payable balance during a period.
From a trend perspective, the payables turnover ratio has generally been within a range between 20 and 30 over the last few years. A higher payables turnover ratio suggests that the company is paying off its suppliers more quickly, which could indicate strong liquidity or negotiation power with suppliers. On the other hand, a lower ratio may imply that the company is taking longer to pay its bills, potentially signaling cash flow issues or strained supplier relationships.
Overall, ABM Industries Incorporated has maintained a relatively stable payables turnover ratio over the years, hovering around the mid to high 20s. It would be important to analyze this ratio in conjunction with other financial metrics to get a holistic view of the company's working capital management and financial health.
Peer comparison
Oct 31, 2024