ABM Industries Incorporated (ABM)
Profitability ratios
Return on sales
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 2.48% | 4.05% | 4.00% | 2.78% | 13.98% |
| Operating profit margin | 2.54% | 5.11% | 4.49% | 3.33% | 1.61% |
| Pretax margin | 1.60% | 4.13% | 3.99% | 2.90% | 0.90% |
| Net profit margin | 0.97% | 3.14% | 2.97% | 2.04% | 0.01% |
From the profitability ratios of ABM Industries Incorporated over the past five years, we observe a downward trend in gross profit margin, which decreased significantly from 13.98% in 2020 to 2.48% in 2024. This may indicate a decrease in the company's ability to generate profit from its core operations.
Similarly, the operating profit margin and pretax margin also show a general decline over the same period, with reductions in profitability from 5.11% to 2.54% and 4.13% to 1.60%, respectively. These declining trends suggest that the company may be facing challenges in controlling operating expenses and achieving efficiencies in generating earnings before and after taxes.
The net profit margin, which represents the bottom line profitability after all expenses have been deducted, also experienced a decrease over the five-year period, falling from 3.14% to 0.97%. This decline indicates that ABM Industries Incorporated may be experiencing challenges in managing its costs and improving its overall profitability.
In conclusion, the decreasing profitability ratios of ABM Industries Incorporated suggest potential concerns regarding the company's operational efficiency and ability to generate profits. As an analyst, further investigation into the specific factors contributing to these declines would be necessary to provide a more detailed assessment of the company's financial performance.
Return on investment
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.16% | 8.30% | 7.16% | 4.65% | 2.53% |
| Return on assets (ROA) | 1.60% | 5.09% | 4.73% | 2.85% | 0.01% |
| Return on total capital | 6.87% | 13.42% | 12.52% | 8.46% | 4.66% |
| Return on equity (ROE) | 4.57% | 13.96% | 13.42% | 7.85% | 0.02% |
ABM Industries Incorporated's profitability ratios exhibit a fluctuating trend over the past five years.
Starting with the operating return on assets (Operating ROA), the company's performance has varied, with a notable decrease from 8.30% in 2023 to 4.16% in 2024. This suggests that the company's operating efficiency in generating profits from its assets has declined in the most recent period.
In terms of overall return on assets (ROA), ABM Industries has shown a similar pattern, with a decrease from 5.09% in 2023 to 1.60% in 2024. This metric indicates the company's ability to generate profits from its total assets, and the declining trend suggests lower overall profitability.
The return on total capital has also experienced a decrease from 13.42% in 2023 to 6.87% in 2024. This ratio reflects the company's ability to generate returns from both debt and equity capital invested in the business, highlighting a declining trend in profitability efficiency.
Finally, looking at the return on equity (ROE), ABM Industries exhibited significant fluctuations, with a drop from 13.96% in 2023 to 4.57% in 2024. ROE reflects the company's ability to generate returns from shareholders' equity, and the decreasing trend indicates a lower profitability level compared to previous years.
In conclusion, ABM Industries Incorporated's profitability ratios have shown mixed performance over the past five years, with decreasing trends in 2024 compared to previous years. This suggests a need for the company to focus on improving operational efficiency and generating higher returns for its shareholders and investors.