ABM Industries Incorporated (ABM)
Operating return on assets (Operating ROA)
| Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 212,000 | 299,200 | 400,700 | 412,100 | 409,400 | 382,100 | 331,900 | 314,200 | 348,800 | 325,400 | 227,300 | 202,600 | 206,300 | 223,500 | 326,500 | 159,500 | 95,600 | 88,900 | 52,600 | 223,800 |
| Total assets | US$ in thousands | 5,097,200 | 5,040,400 | 4,929,500 | 4,955,400 | 4,933,700 | 4,970,000 | 4,932,900 | 4,918,000 | 4,868,900 | 4,607,600 | 4,586,300 | 4,504,900 | 4,436,200 | 3,897,400 | 3,792,000 | 3,782,200 | 3,776,900 | 3,668,300 | 4,079,200 | 3,847,100 |
| Operating ROA | 4.16% | 5.94% | 8.13% | 8.32% | 8.30% | 7.69% | 6.73% | 6.39% | 7.16% | 7.06% | 4.96% | 4.50% | 4.65% | 5.73% | 8.61% | 4.22% | 2.53% | 2.42% | 1.29% | 5.82% |
October 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $212,000K ÷ $5,097,200K
= 4.16%
ABM Industries Incorporated has shown fluctuations in its operating return on assets (operating ROA) over the past few years. The operating ROA has ranged from 1.29% to 8.61% during the period from January 2020 to October 2024. The average operating ROA over this period is approximately 5.70%.
It is important to note that operating ROA measures how efficiently a company is generating profits from its assets used in regular business operations. A higher operating ROA indicates better operational efficiency and profitability.
ABM Industries Incorporated's operating ROA peaked at 8.61% in April 2021, indicating a strong performance in efficiently utilizing its assets to generate earnings. However, the operating ROA declined in the following periods before showing an improvement again in January 2024 at 8.32%.
The company's ability to maintain operating ROA above 5% for most periods reflects a consistent level of operational effectiveness, although there have been fluctuations. Management should continue to focus on improving efficiency in asset utilization to enhance profitability and overall financial performance.
Peer comparison
Oct 31, 2024