ABM Industries Incorporated (ABM)
Financial leverage ratio
Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | 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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Total assets | US$ in thousands | 5,097,200 | 5,040,400 | 4,929,500 | 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 |
Total stockholders’ equity | US$ in thousands | 1,781,900 | 1,835,000 | 1,835,000 | 1,843,600 | 1,799,900 | 1,860,100 | 1,860,100 | 1,782,800 | 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 |
Financial leverage ratio | 2.86 | 2.75 | 2.69 | 2.69 | 2.74 | 2.67 | 2.65 | 2.76 | 2.84 | 2.74 | 2.75 | 2.72 | 2.76 | 2.47 | 2.37 | 2.41 | 2.52 | 2.53 | 2.92 | 2.47 |
October 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,097,200K ÷ $1,781,900K
= 2.86
ABM Industries Incorporated's financial leverage ratio has shown some fluctuation over the past few years. The ratio has ranged from 2.37 to 2.92, with the most recent value reported at 2.86 as of October 31, 2024. This indicates that the company's level of financial leverage has been relatively high compared to other periods.
A financial leverage ratio above 1 suggests that the company relies more on debt to finance its operations, with a higher ratio indicating a higher level of debt relative to equity. In ABM Industries' case, the consistently elevated financial leverage ratios imply a significant reliance on debt in its capital structure.
It is essential to monitor the trend of the financial leverage ratio to assess the company's ability to meet its debt obligations and manage financial risk effectively. Additionally, fluctuations in this ratio may indicate changes in the company's capital structure or financial strategy, which could impact its overall financial health and stability.
Peer comparison
Oct 31, 2024