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