ABM Industries Incorporated (ABM)

The solvency ratios of ABM Industries Incorporated indicate the company's ability to meet its financial obligations over the years. The debt-to-assets ratio has remained relatively stable around 0.2 to 0.3, illustrating the proportion of the company's assets financed by debt. The debt-to-capital ratio has followed a similar trend, showing consistent levels of debt funding as a percentage of the company's total capital.

The debt-to-equity ratio has shown an increasing trend, indicating a higher reliance on debt financing compared to equity. This suggests that ABM Industries has been increasing its leverage over the years, which can pose risks during economic downturns or periods of financial distress.

The financial leverage ratio has also been gradually increasing, reflecting the company's growing reliance on debt to finance its operations. While leverage can amplify returns in good times, it also increases the company's vulnerability to economic downturns and interest rate fluctuations.

Overall, ABM Industries' solvency ratios suggest a gradual shift towards higher debt levels relative to assets, capital, and equity. This may indicate a strategy to boost growth or profitability, but it also raises concerns about the company's financial stability and ability to manage its debt load effectively in the long run.

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Coverage ratios

ABM Industries Incorporated's interest coverage ratio has fluctuated over the past five years. In 2024, the interest coverage ratio stood at 2.49, a decrease from the previous year's ratio of 5.02. Despite the decrease in 2024, the company's interest coverage remains at a level that suggests the ability to meet its interest payment obligations.

Looking back over the five-year period, there is a notable increase in the interest coverage ratio from 2020 to 2022, where the ratio rose from 2.20 to 8.54. This indicates that the company's ability to cover its interest payments improved significantly during this period. However, there was a slight decrease in 2023 and a more substantial decrease in 2024, which may raise some concerns about the sustainability of the company's interest coverage ratio going forward.

Overall, ABM Industries Incorporated's interest coverage ratio has shown variability over the years, with periods of improvement followed by slight declines. It is important for investors and stakeholders to monitor this ratio closely to ensure that the company can continue to meet its interest payment obligations and maintain its financial stability.