ABM Industries Incorporated (ABM)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.48 | 1.40 | 1.47 | 1.53 | 1.30 | 1.15 | 1.21 | 1.18 | 1.17 | 1.09 | 1.45 | 1.41 | 1.45 | 1.46 | 1.50 | 1.82 | 1.48 | 1.41 | 1.50 | 1.50 |
| Quick ratio | 0.03 | 0.04 | 0.06 | 0.06 | 0.06 | 0.05 | 0.04 | 0.03 | 0.02 | 0.03 | 0.44 | 0.38 | 0.35 | 0.37 | 0.22 | 0.55 | 0.05 | 0.04 | 0.04 | 0.04 |
| Cash ratio | 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 | 0.06 | 0.07 | 0.06 |
On analyzing the liquidity ratios of ABM Industries Inc., we find that the current ratio, quick ratio, and cash ratio have shown fluctuations over the past eight quarters. The current ratio has generally improved, ranging from 1.15 to 1.53, indicating the company's ability to meet its short-term obligations with its current assets. Similarly, the quick ratio, which excludes inventory from current assets, exhibits a similar trend, ranging from 1.15 to 1.53, indicating the company's ability to cover its current liabilities without relying on selling inventory.
The cash ratio, which represents the company's ability to cover its current liabilities with its most liquid assets, notably improved from 0.15 to 0.22, implying the company's enhanced ability to settle its short-term obligations with its available cash holdings. Overall, the upward trends in these liquidity ratios suggest that ABM Industries Inc. has maintained a solid liquidity position and possesses the ability to meet its short-term financial commitments efficiently.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -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 | -11.80 | -13.37 | -12.23 |
The cash conversion cycle for ABM Industries Inc. has been relatively stable over the past quarters, ranging from 63.33 days to 67.81 days. This metric represents the number of days it takes for the company to convert its investments in inventory and other resources into cash flows from sales. A longer cash conversion cycle indicates that the company is taking longer to generate cash from its operating activities.
In the most recent quarter, Q1 2024, the cash conversion cycle was 67.08 days, slightly lower than the previous quarter but still within the range of the past few quarters. This suggests that ABM Industries Inc. may be efficient in managing its inventory and accounts receivable to ensure a steady flow of cash.
Overall, the company's cash conversion cycle appears to be well-managed and consistent, indicating effective working capital management practices. Monitoring this metric over time can help identify any potential changes in the company's liquidity and operating efficiency.