ABM Industries Incorporated (ABM)
Debt-to-equity 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-equity ratio | 0.73 | 0.71 | 0.63 | 0.53 | 0.40 |
October 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,302,200K ÷ $1,781,900K
= 0.73
The debt-to-equity ratio of ABM Industries Incorporated has been steadily increasing over the past five years, indicating a trend of higher reliance on debt compared to equity. As of October 31, 2024, the debt-to-equity ratio stands at 0.73, which means that the company's debt levels are 73% of its equity levels.
The increasing trend in the debt-to-equity ratio suggests that ABM Industries has been taking on more debt relative to its equity over time. While a higher debt-to-equity ratio can sometimes indicate a higher financial risk due to the increased leverage, it can also indicate efficient use of debt financing for growth and expansion purposes.
Overall, ABM Industries' increasing debt-to-equity ratio may raise concerns about the company's financial leverage and ability to manage its debt obligations effectively. It is important for investors and stakeholders to monitor this ratio closely to assess the company's financial health and risk profile.
Peer comparison
Oct 31, 2024