ABM Industries Incorporated (ABM)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 215,000 | 303,100 | 405,900 | 416,200 | 413,400 | 385,600 | 334,800 | 317,000 | 351,000 | 327,900 | 229,600 | 204,600 | 208,400 | 225,100 | 327,800 | 161,500 | 98,000 | 91,600 | 56,000 | 226,800 |
| Long-term debt | US$ in thousands | 1,302,200 | 1,305,100 | 1,239,000 | 1,296,900 | 1,279,800 | 1,292,700 | 1,352,500 | 1,203,400 | 1,086,300 | 1,009,200 | 986,600 | 971,900 | 852,800 | 623,800 | 524,200 | 573,800 | 603,000 | 664,200 | 1,105,700 | 786,300 |
| Total stockholders’ equity | US$ in thousands | 1,781,900 | 1,835,000 | 1,835,000 | 1,843,600 | 1,799,900 | 1,860,100 | 1,860,100 | 1,782,800 | 1,717,200 | 1,680,300 | 1,669,600 | 1,655,200 | 1,609,200 | 1,580,300 | 1,599,800 | 1,569,100 | 1,500,300 | 1,451,300 | 1,395,200 | 1,559,700 |
| Return on total capital | 6.97% | 9.65% | 13.20% | 13.25% | 13.42% | 12.23% | 10.42% | 10.62% | 12.52% | 12.19% | 8.64% | 7.79% | 8.46% | 10.21% | 15.43% | 7.54% | 4.66% | 4.33% | 2.24% | 9.67% |
October 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $215,000K ÷ ($1,302,200K + $1,781,900K)
= 6.97%
ABM Industries Incorporated has shown varying levels of return on total capital over the past several quarters. The return on total capital ranged from a low of 2.24% in January 2020 to a high of 15.43% in April 2021.
The company's return on total capital showed an overall positive trend from January 2020 to April 2021, reflecting a strong performance during this period. However, there was a decrease in the return on total capital in the subsequent quarters before showing some improvement in the latest quarter at 6.97%.
The return on total capital is a measure of how efficiently the company is utilizing its capital to generate profits. An increasing trend in this ratio indicates that the company is becoming more efficient in generating returns from its invested capital. Conversely, a decreasing trend could signal potential inefficiencies in capital allocation or operational performance.
Overall, a closer look at the factors contributing to the fluctuations in return on total capital would provide a more in-depth understanding of ABM Industries Incorporated's financial performance and areas for improvement.
Peer comparison
Oct 31, 2024