ABM Industries Incorporated (ABM)
Debt-to-capital ratio
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,279,800 | 1,086,300 | 852,800 | 603,000 | 744,200 |
| Total stockholders’ equity | US$ in thousands | 1,799,900 | 1,717,200 | 1,609,200 | 1,500,300 | 1,542,000 |
| Debt-to-capital ratio | 0.42 | 0.39 | 0.35 | 0.29 | 0.33 |
October 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,279,800K ÷ ($1,279,800K + $1,799,900K)
= 0.42
The debt-to-capital ratio of ABM Industries Inc. has exhibited a fluctuating trend over the past five years. In 2019, the ratio stood at 0.34, indicating that 34% of the company's capital was financed by debt. Subsequently, there was an increase in 2020 to 0.32, suggesting a decrease in the proportion of debt to capital. This was followed by a rise in the ratio to 0.35 in 2021, indicating a slight increase in the reliance on debt for capital financing. Notably, the ratio remained constant at 0.42 in both 2022 and 2023, potentially signaling a stabilization of the company's debt-to-capital structure at 42%.
Overall, the company's debt-to-capital ratio has shown variability, potentially reflecting shifts in capital structure and borrowing decisions. The consistency of the ratio in the most recent years may indicate a deliberate strategy or a balance in managing debt and equity components of the company's capital structure.
Peer comparison
Oct 31, 2023