ABM Industries Incorporated (ABM)
Debt-to-assets ratio
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,302,200 | 1,279,800 | 1,086,300 | 852,800 | 603,000 |
| Total assets | US$ in thousands | 5,097,200 | 4,933,700 | 4,868,900 | 4,436,200 | 3,776,900 |
| Debt-to-assets ratio | 0.26 | 0.26 | 0.22 | 0.19 | 0.16 |
October 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,302,200K ÷ $5,097,200K
= 0.26
The debt-to-assets ratio of ABM Industries Incorporated has shown a consistent upward trend over the past five years, increasing from 0.16 in 2020 to 0.26 in 2024. This indicates that the company has been relying more on debt to finance its assets relative to its equity over time.
A higher debt-to-assets ratio suggests that a larger portion of the company's assets is funded by debt rather than equity. While debt can be a cost-effective way to finance growth and operations, it also increases financial risk due to interest payments and potential solvency issues.
ABM Industries' increasing debt-to-assets ratio may raise concerns about its financial stability and ability to meet its debt obligations in the long term. It is important for investors and stakeholders to monitor the company's debt levels and evaluate its ability to generate sufficient cash flow to service its debt.
Peer comparison
Oct 31, 2024