ABM Industries Incorporated (ABM)
Financial leverage ratio
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,955,400 | 4,933,700 | 4,970,000 | 4,932,900 | 4,918,000 | 4,868,900 | 4,607,600 | 4,586,300 | 4,504,900 | 4,436,200 | 3,897,400 | 3,792,000 | 3,782,200 | 3,776,900 | 3,668,300 | 4,079,200 | 3,847,100 | 3,692,600 | 3,744,000 | 3,729,900 |
| Total stockholders’ equity | US$ in thousands | 1,822,700 | 1,799,900 | 1,860,100 | 1,782,800 | 1,736,500 | 1,717,200 | 1,680,300 | 1,669,600 | 1,655,200 | 1,609,200 | 1,580,300 | 1,599,800 | 1,569,100 | 1,500,300 | 1,451,300 | 1,395,200 | 1,559,700 | 1,542,000 | 1,503,600 | 1,481,400 |
| Financial leverage ratio | 2.72 | 2.74 | 2.67 | 2.77 | 2.83 | 2.84 | 2.74 | 2.75 | 2.72 | 2.76 | 2.47 | 2.37 | 2.41 | 2.52 | 2.53 | 2.92 | 2.47 | 2.39 | 2.49 | 2.52 |
January 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,955,400K ÷ $1,822,700K
= 2.72
ABM Industries Inc.'s financial leverage ratio has ranged from 2.67 to 2.84 over the past eight quarters, with Q2 2023 having the highest ratio at 2.83 and Q3 2023 having the lowest ratio at 2.67. The overall trend indicates that the company has maintained a relatively stable level of financial leverage, fluctuating within a narrow range. A financial leverage ratio above 1 indicates that the company relies more on debt financing than equity financing to support its operations and growth. ABM Industries Inc.'s average financial leverage ratio of approximately 2.75 suggests that the company has a moderate level of leverage, indicating a balanced capital structure. However, management should continue to monitor the financial leverage ratio to ensure it remains within a sustainable range and does not pose a risk to the company's financial stability.
Peer comparison
Jan 31, 2024