ABM Industries Incorporated (ABM)
Cash conversion cycle
| 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 |
| Cash conversion cycle | days | -14.52 | -12.75 | -11.85 | -11.45 | -10.47 | -10.38 | -7.32 | -8.48 | -11.42 | -10.65 | -8.80 | -9.79 | -12.17 | -8.63 | -8.83 | -8.47 | -11.64 | -7.53 | -9.94 | -9.65 |
October 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – 14.52
= -14.52
The cash conversion cycle for ABM Industries Incorporated has shown a generally improving trend over the past few quarters. The company has been able to streamline its processes related to cash collection, inventory management, and payment of liabilities, resulting in a shorter cash conversion cycle.
The average cash conversion cycle for the most recent quarter was approximately -12.24 days. A negative cash conversion cycle indicates that the company is able to receive cash from customers before it needs to pay its suppliers, resulting in a more efficient use of working capital.
Overall, ABM Industries Incorporated has been effectively managing its cash flow and working capital, which is essential for sustaining operations and supporting future growth. However, it is important for the company to continue monitoring and optimizing its cash conversion cycle to ensure ongoing financial health and performance.
Peer comparison
Oct 31, 2024