ABM Industries Incorporated (ABM)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 1,781,900 | 1,799,900 | 1,717,200 | 1,609,200 | 1,500,300 |
| Debt-to-capital ratio | 0.42 | 0.42 | 0.39 | 0.35 | 0.29 |
October 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,302,200K ÷ ($1,302,200K + $1,781,900K)
= 0.42
The debt-to-capital ratio of ABM Industries Incorporated has exhibited an increasing trend over the five-year period from October 31, 2020, to October 31, 2024. The ratio has progressively risen from 0.29 in 2020 to 0.42 in 2024. This indicates that the company's reliance on debt financing relative to its capital structure has been growing steadily over the years. A higher debt-to-capital ratio suggests a higher level of financial leverage, which can potentially magnify returns on equity but also increase financial risk. ABM Industries may have been using debt to fund growth opportunities, acquisitions, or working capital needs. It is essential for investors and stakeholders to monitor this trend and assess the company's ability to service its debt obligations effectively in the long term.
Peer comparison
Oct 31, 2024