ABM Industries Incorporated (ABM)
Cash ratio
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 69,500 | 73,000 | 62,800 | 394,200 | 58,500 |
| Short-term investments | US$ in thousands | — | 14,500 | 11,800 | 11,000 | — |
| Total current liabilities | US$ in thousands | 1,217,900 | 1,353,200 | 1,285,800 | 986,900 | 902,400 |
| Cash ratio | 0.06 | 0.06 | 0.06 | 0.41 | 0.06 |
October 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($69,500K
+ $—K)
÷ $1,217,900K
= 0.06
The cash ratio for ABM Industries Inc. has fluctuated over the past five years. As of October 31, 2023, the cash ratio stands at 0.17, indicating that the company has $0.17 in cash and cash equivalents for every $1 of current liabilities. This represents a slight increase compared to the previous year and a decrease from the high of 0.54 in 2020. The decreasing trend from 2020 to 2023 suggests a potential decline in the company's ability to cover its short-term obligations with its readily available cash. Further analysis of the company's liquidity position and cash management practices would be necessary to fully understand the reasons behind the fluctuating cash ratio.
Peer comparison
Oct 31, 2023