ABM Industries Incorporated (ABM)
Profitability ratios
Return on sales
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 4.05% | 4.00% | 2.78% | 13.98% | 11.34% |
| Operating profit margin | 5.11% | 4.49% | 3.33% | 1.61% | 3.23% |
| Pretax margin | 4.13% | 3.99% | 2.90% | 0.90% | 2.48% |
| Net profit margin | 3.14% | 2.97% | 2.04% | 0.01% | 1.98% |
ABM Industries Inc. has demonstrated consistent and strong gross profit margins, maintaining 100.00% over the past five years, indicating efficiency in its cost of goods sold. The operating profit margin has shown improvement, increasing from 3.38% in 2019 to 5.06% in 2023, reflecting the company's ability to control its operating expenses and generate higher profits from its core business activities.
The pretax margin has also exhibited positive growth, rising from 2.47% in 2019 to 4.09% in 2023, indicating effective management of pre-tax operating income relative to its total revenue. Net profit margin has similarly increased, with a significant jump from 1.97% in 2019 to 3.11% in 2023, signaling the company's ability to translate its revenue into profits after accounting for all expenses and taxes.
Overall, ABM Industries Inc.'s profitability ratios depict a positive trend, reflecting strong control over costs and expenses, leading to improved profitability over the years.
Return on investment
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.30% | 7.16% | 4.65% | 2.53% | 5.64% |
| Return on assets (ROA) | 5.09% | 4.73% | 2.85% | 0.01% | 3.45% |
| Return on total capital | 13.42% | 12.52% | 8.46% | 4.66% | 9.24% |
| Return on equity (ROE) | 13.96% | 13.42% | 7.85% | 0.02% | 8.26% |
The profitability ratios of ABM Industries Inc. reflect its ability to generate returns for its stakeholders and efficiently utilize its assets. The operating return on assets (Operating ROA) has shown a positive trend over the last five years, with a notable increase from 4.65% in 2021 to 8.30% in 2023. This indicates an improvement in the company's operating efficiency and profitability from its core business activities.
Similarly, the return on assets (ROA) has also exhibited an upward trajectory, reaching 5.10% in 2023 from 2.84% in 2021. This suggests that the overall profitability derived from the company's total assets has strengthened over the years.
The return on total capital has shown consistent growth, with a significant increase from 8.35% in 2021 to 13.29% in 2023. This is indicative of the company's ability to generate higher returns on the total capital employed, reflecting efficient capital allocation and effective investment utilization.
Furthermore, the return on equity (ROE) has displayed a positive trend, reaching 13.97% in 2023 from 7.84% in 2021. This improvement signifies the company's capacity to generate favorable returns for its shareholders based on the equity invested.
Overall, ABM Industries Inc.'s profitability ratios reflect a positive and improving trend, indicating enhanced operational efficiency, effective asset utilization, and favorable returns for its capital providers and shareholders over the past five years.