ABM Industries Incorporated (ABM)

Operating profit margin

Oct 31, 2023 Oct 31, 2022 Oct 31, 2021 Oct 31, 2020 Oct 31, 2019
Operating income US$ in thousands 409,500 348,800 206,300 95,700 208,300
Revenue US$ in thousands 8,014,100 7,765,500 6,200,000 5,943,000 6,447,500
Operating profit margin 5.11% 4.49% 3.33% 1.61% 3.23%

October 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $409,500K ÷ $8,014,100K
= 5.11%

Based on the data provided, ABM Industries Inc.'s operating profit margin has shown variation over the past five years. The operating profit margin indicates the company's ability to generate profit from its core operations.

In 2023, the operating profit margin increased to 5.06% from 4.47% in 2022, reflecting improved efficiency in controlling operating expenses and higher revenue generation. This suggests a positive trend in the company's operational profitability.

The 2021 operating profit margin was 3.31%, which represented a significant increase from 2020's figure of 4.61%. This reduction may be attributed to changes in the cost structure or revenue composition of the business, as well as potential external factors such as economic conditions or industry-specific challenges.

Furthermore, the 2019 operating profit margin stood at 3.38%, indicating a slightly lower level of operational profitability compared to 2021. This highlights the company's ongoing efforts to manage costs and improve operational efficiency.

Overall, the fluctuation in ABM Industries Inc.'s operating profit margin over the years suggests the company's responsiveness to changing market conditions and its ability to adapt its operational strategies to maintain and improve profitability.


Peer comparison

Oct 31, 2023

Company name
Symbol
Operating profit margin
ABM Industries Incorporated
ABM
5.11%
Airbnb Inc
ABNB
15.31%
Frontdoor Inc
FTDR
13.54%
Rollins Inc
ROL
19.00%