ABM Industries Incorporated (ABM)

Working capital 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
Total current assets US$ in thousands 1,788,700 1,710,700 1,561,200 1,401,200 1,441,900
Total current liabilities US$ in thousands 1,348,400 1,217,900 1,353,200 1,285,800 986,900
Working capital turnover 18.99 16.26 37.33 53.73 13.06

October 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $8,359,400K ÷ ($1,788,700K – $1,348,400K)
= 18.99

The working capital turnover ratio for ABM Industries Incorporated has fluctuated over the past five years. In 2024, the ratio stands at 18.99, indicating that the company generated $18.99 in net sales for every dollar of working capital. This represents an increase from the previous year, suggesting improved efficiency in utilizing working capital. However, compared to 2022 and 2021, when the ratios were 37.33 and 53.73 respectively, the current ratio is lower, indicating a potential decline in the company's efficiency in generating sales from working capital. In 2020, the ratio was 13.06, the lowest in the period, indicating a lower turnover of working capital compared to the other years. Overall, the fluctuation in the working capital turnover ratio indicates varying efficiency levels in utilizing working capital to generate sales over the years. Further analysis of the underlying factors affecting working capital management would be necessary to fully assess the company's financial performance.


Peer comparison

Oct 31, 2024

Company name
Symbol
Working capital turnover
ABM Industries Incorporated
ABM
18.99
Airbnb Inc
ABNB
1.51
Frontdoor Inc
FTDR
55.62
Rollins Inc
ROL