ABM Industries Incorporated (ABM)
Return on assets (ROA)
| 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 |
| Total assets | US$ in thousands | 4,933,700 | 4,868,900 | 4,436,200 | 3,776,900 | 3,692,600 |
| ROA | 5.09% | 4.73% | 2.85% | 0.01% | 3.45% |
October 31, 2023 calculation
ROA = Net income ÷ Total assets
= $251,300K ÷ $4,933,700K
= 5.09%
The return on assets (ROA) for ABM Industries Inc. has shown fluctuating trends over the past five years. The company’s ROA was 5.10% as of October 31, 2023, indicating an improvement compared to the previous year's 4.73%. This suggests that the company has become more efficient in generating profits from its assets. The significant increase in ROA from 2020 to 2021, reaching 2.84%, reflects a marked improvement in the company's ability to generate profits relative to its asset base. However, the ROA dropped to 0.01% in 2020, signaling a significant decline in asset efficiency. In 2019, the ROA was 3.46%, indicating a relatively healthy performance.
Overall, the upward trend in ROA from 2020 to 2023 suggests that ABM Industries Inc. has improved in utilizing its assets to generate profits. However, it is important to delve into the company's financial statements and operations to gain a deeper understanding of the factors driving these changes in ROA.
Peer comparison
Oct 31, 2023