ABM Industries Incorporated (ABM)
Net profit margin
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 251,300 | 230,400 | 126,300 | 300 | 127,400 |
| Revenue | US$ in thousands | 8,014,100 | 7,765,500 | 6,200,000 | 5,943,000 | 6,447,500 |
| Net profit margin | 3.14% | 2.97% | 2.04% | 0.01% | 1.98% |
October 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $251,300K ÷ $8,014,100K
= 3.14%
The net profit margin is a key financial ratio that indicates the percentage of each dollar of revenue that results in net income. It is calculated by dividing net income by total revenue. A higher net profit margin signifies a more efficient operation and better cost management.
Analyzing ABM Industries Inc.'s net profit margin over the past five years reveals a positive trend. In 2019, the net profit margin was 1.97%, indicating that the company generated $0.0197 in net income for every dollar of revenue. This margin then decreased significantly in 2020 to a mere 0.01%, implying challenges in controlling costs or generating revenue.
However, the company experienced a substantial improvement in 2021, with the net profit margin increasing to 2.03%. This indicated a more efficient handling of costs and an increase in net income generation per dollar of revenue. The positive momentum continued in 2022, with the net profit margin improving to 2.95%, reflecting further enhancement in profitability.
In the most recent year, 2023, ABM Industries Inc. managed to sustain and build upon its profitability trend, achieving a net profit margin of 3.11%. This signifies a notable enhancement compared to the previous year and demonstrates the company's ability to effectively convert revenue into net income, indicating strengthened operational efficiency or improved cost management.
Overall, the increasing trend in ABM Industries Inc.'s net profit margin from 2019 to 2023 reflects positive financial management and operational efficiency, boding well for the company's financial health and potential for further growth.
Peer comparison
Oct 31, 2023