ABM Industries Incorporated (ABM)
Working capital turnover
| 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 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 6,459,300 | 6,460,100 | 6,530,000 |
| Total current assets | US$ in thousands | 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 | 1,275,400 | 1,319,200 | 1,280,900 |
| Total current liabilities | US$ in thousands | 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 | 902,400 | 877,400 | 851,100 |
| Working capital turnover | 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 | 17.32 | 14.62 | 15.19 |
January 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $8,090,900K ÷ ($1,723,900K – $1,165,300K)
= 14.48
The working capital turnover of ABM Industries Inc. has been fluctuating over the past eight quarters, as evidenced by the figures in the table. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate revenue.
In Q1 2024, the working capital turnover was reported at 14.64, which indicates that the company generated $14.64 in revenue for every dollar of working capital invested during that quarter. This was a decrease from the previous quarter, Q4 2023, where the ratio was 16.43.
The highest working capital turnover ratio in the table was observed in Q4 2022, standing at 37.51, reflecting a very efficient utilization of working capital to generate revenue. On the other hand, the lowest ratio was reported in Q1 2023, at 13.62.
Overall, the fluctuations in the working capital turnover ratio suggest varying levels of efficiency in managing and utilizing working capital over the past two years. It is important for the company to strive for consistency and improvement in this ratio to ensure optimal utilization of its resources for revenue generation.
Peer comparison
Jan 31, 2024