ABM Industries Incorporated (ABM)
Return on assets (ROA)
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 81,400 | 251,300 | 230,400 | 126,300 | 300 |
| Total assets | US$ in thousands | 5,097,200 | 4,933,700 | 4,868,900 | 4,436,200 | 3,776,900 |
| ROA | 1.60% | 5.09% | 4.73% | 2.85% | 0.01% |
October 31, 2024 calculation
ROA = Net income ÷ Total assets
= $81,400K ÷ $5,097,200K
= 1.60%
ABM Industries Incorporated's return on assets (ROA) has exhibited fluctuations over the past five years, ranging from 0.01% in 2020 to 5.09% in 2023. The downward trend observed from 2023 to 2024, with ROA decreasing from 5.09% to 1.60%, may raise concerns about the company's profitability and efficiency in utilizing its assets to generate earnings. It is essential for ABM Industries to closely monitor and improve its ROA, as higher ROA values indicate better asset utilization and profitability. Management should focus on optimizing operations and investing in projects that yield higher returns to enhance the company's overall financial performance.
Peer comparison
Oct 31, 2024