ABM Industries Incorporated (ABM)
Working capital 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 |
| Total current assets | US$ in thousands | 1,788,700 | 1,723,400 | 1,697,900 | 1,723,900 | 1,710,700 | 1,729,200 | 1,693,000 | 1,656,300 | 1,561,200 | 1,539,700 | 1,508,200 | 1,477,500 | 1,401,200 | 1,600,300 | 1,499,000 | 1,474,600 | 1,441,900 | 1,312,200 | 1,715,000 | 1,284,900 |
| Total current liabilities | US$ in thousands | 1,348,400 | 1,246,100 | 1,179,100 | 1,165,300 | 1,217,900 | 1,176,500 | 1,109,500 | 1,276,300 | 1,353,200 | 1,273,700 | 1,280,700 | 1,267,800 | 1,285,800 | 1,105,500 | 1,064,400 | 1,017,800 | 986,900 | 877,400 | 941,200 | 871,100 |
| 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 |
October 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $8,317,500K ÷ ($1,788,700K – $1,348,400K)
= 18.89
ABM Industries Incorporated's working capital turnover ratio has shown fluctuations over the past 10 quarters. The ratio has ranged from a low of 8.23 to a high of 53.73, indicating varying efficiency in utilizing its working capital to generate sales revenue.
The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales. A higher ratio suggests better efficiency in managing working capital, while a lower ratio may indicate inefficiency or underutilization of resources.
ABM Industries' working capital turnover has generally been on an upwards trend, with some fluctuations along the way. This could imply improvements in the company's ability to convert its working capital into sales over time. However, the significant fluctuations in the ratio may also indicate changes in the company's working capital management practices or business operations.
Overall, further analysis of the company's working capital components and operational strategies would be necessary to understand the drivers behind the fluctuations in the working capital turnover ratio and to assess its implications on ABM Industries' financial performance and operational efficiency.
Peer comparison
Oct 31, 2024