ABM Industries Incorporated (ABM)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 64,600 | 86,300 | 60,700 | 58,000 | 69,500 | 97,700 | 71,200 | 87,900 | 73,000 | 63,900 | 48,900 | 46,600 | 62,800 | 505,400 | 435,700 | 378,300 | 394,200 | 229,400 | 555,900 | 69,800 |
| Short-term investments | US$ in thousands | 0 | — | — | — | — | — | 14,400 | 15,600 | 14,500 | 14,800 | 15,800 | 15,300 | 11,800 | 11,000 | — | 11,000 | 11,000 | — | — | — |
| 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 |
| Cash ratio | 0.05 | 0.07 | 0.05 | 0.05 | 0.06 | 0.08 | 0.08 | 0.08 | 0.06 | 0.06 | 0.05 | 0.05 | 0.06 | 0.47 | 0.41 | 0.38 | 0.41 | 0.26 | 0.59 | 0.08 |
October 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($64,600K
+ $0K)
÷ $1,348,400K
= 0.05
Based on the data provided, the cash ratio of ABM Industries Incorporated has shown some fluctuation over the past few years. The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents.
The cash ratio has ranged from as low as 0.05 to as high as 0.59 over the period from January 2020 to October 2024. A higher cash ratio indicates that the company has a stronger ability to cover its short-term obligations with its cash on hand.
In recent periods, the cash ratio has generally been below 0.10, indicating that ABM Industries Incorporated may have a relatively low level of cash on hand compared to its short-term liabilities. The sharp increase in the cash ratio in April and July 2021 to 0.47 and 0.41, respectively, may suggest that the company experienced a significant increase in cash reserves during that period. However, this trend was not sustained, as the ratio decreased to 0.38 in January 2021 and continued to fluctuate around the 0.05 to 0.08 range in subsequent periods.
Overall, a cash ratio below 0.10 may indicate that ABM Industries Incorporated relies more heavily on other liquid assets or financing to cover its short-term obligations. It would be important to further investigate the reasons behind the fluctuations in the cash ratio to understand the company's liquidity management strategy and financial health.
Peer comparison
Oct 31, 2024