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

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