ABM Industries Incorporated (ABM)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,799,900 | 1,717,200 | 1,609,200 | 1,500,300 | 1,542,000 |
| ROE | 13.96% | 13.42% | 7.85% | 0.02% | 8.26% |
October 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $251,300K ÷ $1,799,900K
= 13.96%
ABM Industries Inc.'s return on equity (ROE) has shown a fluctuating trend over the past five years. In 2019, the ROE stood at 8.29%, indicating a reasonable return to shareholders. However, in 2020, there was a significant decrease in ROE to a mere 0.03%, signaling a drastic drop in the company's ability to generate profit from shareholders' equity.
In the subsequent years, there was a notable improvement in ROE, with a significant increase to 7.84% in 2021, followed by a further rise to 13.42% in 2022 and 13.97% in 2023. This upward trend indicates that the company's efficiency in utilizing shareholder's equity to generate profits has improved significantly.
The latest ROE figure of 13.97% in 2023 suggests that ABM Industries Inc. has been able to generate a healthy return for its shareholders in the most recent fiscal year. This could be attributed to improved management of assets and financial leverage, leading to more efficient use of equity capital to generate earnings.
Overall, the increasing ROE trend from 2020 to 2023 indicates enhanced profitability and efficiency in utilizing shareholder's equity, reflecting positively on the company's financial performance and ability to create value for its shareholders.
Peer comparison
Oct 31, 2023