ABM Industries Incorporated (ABM)
Return on total capital
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 212,000 | 413,300 | 351,100 | 208,400 | 98,000 |
| Long-term debt | US$ in thousands | 1,302,200 | 1,279,800 | 1,086,300 | 852,800 | 603,000 |
| Total stockholders’ equity | US$ in thousands | 1,781,900 | 1,799,900 | 1,717,200 | 1,609,200 | 1,500,300 |
| Return on total capital | 6.87% | 13.42% | 12.52% | 8.46% | 4.66% |
October 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $212,000K ÷ ($1,302,200K + $1,781,900K)
= 6.87%
ABM Industries Incorporated's return on total capital has fluctuated over the past five years, with a high of 13.42% in October 2023 and a low of 4.66% in October 2020. The return on total capital for the most recent period, October 2024, stands at 6.87%. This indicates that the company is generating a return of 6.87% on the total capital employed in its operations.
The downward trend from 2023 to 2024 may raise some concerns as a decreasing return on total capital could potentially indicate inefficiency in the management of the company's capital resources. However, it is important to consider the external factors that may have influenced this trend, such as changes in market conditions or the company's strategic decisions.
Overall, further analysis and comparison with industry benchmarks would provide additional insights into ABM Industries Incorporated's performance in utilizing its total capital effectively to generate returns for its shareholders.
Peer comparison
Oct 31, 2024