ABM Industries Incorporated (ABM)

Financial leverage ratio

Oct 31, 2024 Oct 31, 2023 Oct 31, 2022 Oct 31, 2021 Oct 31, 2020
Total assets US$ in thousands 5,097,200 4,933,700 4,868,900 4,436,200 3,776,900
Total stockholders’ equity US$ in thousands 1,781,900 1,799,900 1,717,200 1,609,200 1,500,300
Financial leverage ratio 2.86 2.74 2.84 2.76 2.52

October 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,097,200K ÷ $1,781,900K
= 2.86

The financial leverage ratio of ABM Industries Incorporated has been gradually increasing over the past five years, from 2.52 in October 2020 to 2.86 in October 2024. This indicates that the company has been relying more on debt financing to support its operations and growth. A higher financial leverage ratio implies that a larger portion of the company's assets are funded by debt rather than equity. While a higher leverage ratio can amplify returns during good economic times, it also exposes the company to greater financial risk during economic downturns or in times of rising interest rates. It is essential for ABM Industries to carefully manage its debt levels to ensure financial stability and sustainability in the long term.


Peer comparison

Oct 31, 2024

Company name
Symbol
Financial leverage ratio
ABM Industries Incorporated
ABM
2.86
Airbnb Inc
ABNB
2.53
Frontdoor Inc
FTDR
8.01
Rollins Inc
ROL
2.25