ABM Industries Incorporated (ABM)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | 97.96 | 87.55 | 68.75 | 72.17 | 90.84 | 79.00 | 69.70 | 73.52 | 67.89 | 65.96 | 62.39 | 67.06 | 69.01 | 63.82 | 85.38 | 84.06 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Working capital turnover | 18.89 | 17.21 | 15.66 | 14.48 | 16.26 | 14.36 | 13.50 | 20.54 | 37.33 | 28.04 | 30.97 | 31.69 | 53.73 | 12.12 | 13.43 | 12.77 | 13.08 | 14.07 | 8.23 | 15.63 |
The activity ratios for ABM Industries Incorporated reveal valuable insights into the efficiency of the company's operations.
1. Inventory turnover: ABM Industries has shown a fluctuating trend in inventory turnover over the periods, with a peak at 97.96 in October 2023 and a low of 62.39 in April 2021. Higher inventory turnover indicates that the company is efficiently managing its inventory levels and selling products quickly.
2. Receivables turnover: Unfortunately, there is no data available for receivables turnover, which would have indicated how quickly the company is collecting outstanding receivables from its customers.
3. Payables turnover: The payables turnover has displayed variability over time, ranging from 20.81 in October 2021 to a high of 31.89 in January 2024. A higher payables turnover suggests that the company is paying its suppliers promptly and efficiently managing its payables.
4. Working capital turnover: The working capital turnover ratio has also shown fluctuations, with a considerable peak of 53.73 in January 2022. This ratio indicates how effectively the company is utilizing its working capital to generate revenue. A higher turnover ratio implies efficient utilization of resources.
Overall, a high inventory turnover, payables turnover, and working capital turnover suggest effective management of resources and operations within ABM Industries Incorporated. However, the lack of data for receivables turnover limits a comprehensive assessment of the efficiency of the company's accounts receivable management.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | 3.73 | 4.17 | 5.31 | 5.06 | 4.02 | 4.62 | 5.24 | 4.96 | 5.38 | 5.53 | 5.85 | 5.44 | 5.29 | 5.72 | 4.28 | 4.34 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | 14.52 | 12.75 | 11.85 | 11.45 | 14.20 | 14.55 | 12.63 | 13.53 | 15.44 | 15.27 | 14.04 | 14.75 | 17.54 | 14.17 | 14.69 | 13.91 | 16.93 | 13.25 | 14.22 | 13.99 |
Days of inventory on hand (DOH) measures how efficiently a company manages its inventory. For ABM Industries, the DOH has fluctuated over the past few years but has generally been around 4-6 days. A lower number is preferable as it indicates the company is selling its inventory quickly, minimizing holding costs and potential obsolescence.
Days of sales outstanding (DSO) represents how long it takes for the company to collect its accounts receivable. Unfortunately, the data provided does not include DSO figures for ABM Industries, making it challenging to assess the efficiency of the company in collecting receivables.
Number of days of payables shows how long a company takes to pay its creditors. ABM Industries has managed to consistently maintain a payment period of around 11-16 days over the past few years. A higher number could indicate potential cash flow issues or strained relationships with suppliers.
In summary, ABM Industries has shown relatively efficient inventory management and a stable payment period to suppliers. However, lacking DSO figures limits a comprehensive analysis of the company's overall activity ratios.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total asset turnover | 1.63 | 1.63 | 1.65 | 1.63 | 1.62 | 1.60 | 1.60 | 1.59 | 1.59 | 1.62 | 1.54 | 1.48 | 1.40 | 1.54 | 1.54 | 1.54 | 1.58 | 1.67 | 1.56 | 1.68 |
The long-term activity ratios of ABM Industries Incorporated show consistency in the company's ability to efficiently utilize its fixed assets and total assets to generate revenue over the analyzed period.
The fixed asset turnover ratio has ranged between 44.09 and 65.92 over the past two years, indicating that ABM Industries has effectively generated revenue from its investment in fixed assets. The ratio peaked at 65.92 in Jul 2022, suggesting the company was able to generate significant revenue relative to its investment in fixed assets at that time. Despite some fluctuations, the ratio has generally remained high, reflecting good management of fixed assets.
The total asset turnover ratio, on the other hand, has ranged between 1.40 and 1.68 over the same period. This ratio indicates how efficiently the company is using all its assets to generate revenue. ABM Industries has maintained a relatively stable total asset turnover ratio, within a narrow range, indicating consistent performance in asset utilization to generate revenue.
Overall, both the fixed asset turnover and total asset turnover ratios demonstrate that ABM Industries has been successful in effectively utilizing its assets to generate revenue over the analyzed period, with the company consistently demonstrating operational efficiency.