ABM Industries Incorporated (ABM)
Quick ratio
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 64,600 | 69,500 | 73,000 | 62,800 | 394,200 |
| Short-term investments | US$ in thousands | 0 | — | 14,500 | 11,800 | 11,000 |
| Receivables | US$ in thousands | -22,800 | -25,000 | -22,600 | -32,700 | -35,500 |
| Total current liabilities | US$ in thousands | 1,348,400 | 1,217,900 | 1,353,200 | 1,285,800 | 986,900 |
| Quick ratio | 0.03 | 0.04 | 0.05 | 0.03 | 0.37 |
October 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($64,600K
+ $0K
+ $-22,800K)
÷ $1,348,400K
= 0.03
The quick ratio of ABM Industries Incorporated has been fluctuating over the past five years, ranging from a low of 0.03 in October 2024 to a high of 0.37 in October 2020. This ratio measures the company's ability to cover its short-term liabilities with its most liquid assets. A quick ratio below 1.0 suggests that the company may have difficulty meeting its short-term obligations using its liquid assets alone.
The declining trend in the quick ratio from 2020 to 2024 indicates a potential weakening in the company's liquidity position. The sharp drop from 0.37 in 2020 to 0.03 in 2024 raises concerns about the company's ability to meet its short-term obligations without having to rely heavily on selling inventory or obtaining additional financing.
It would be advisable for ABM Industries to closely monitor its liquidity management and take necessary steps to improve its quick ratio in order to enhance its financial stability and mitigate the risks associated with potential liquidity challenges.
Peer comparison
Oct 31, 2024