ABM Industries Incorporated (ABM)

Solvency ratios

	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
Debt-to-assets ratio	0.26	0.26	0.26	0.27	0.24	0.22	0.22	0.22	0.22	0.19	0.16	0.14	0.15	0.16	0.18	0.27	0.20	0.20	0.23	0.24
Debt-to-capital ratio	0.42	0.42	0.41	0.43	0.41	0.39	0.38	0.37	0.37	0.35	0.28	0.25	0.27	0.29	0.31	0.44	0.34	0.33	0.37	0.38
Debt-to-equity ratio	0.71	0.71	0.69	0.76	0.69	0.63	0.60	0.59	0.59	0.53	0.39	0.33	0.37	0.40	0.46	0.79	0.50	0.48	0.58	0.61
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

ABM Industries Inc.'s solvency ratios indicate the company's ability to meet its long-term financial obligations and manage its debt levels effectively. Looking at the trend over the recent quarters:

1. Debt-to-assets ratio has been relatively stable around 0.27 to 0.28, suggesting that a significant portion of the company's assets are financed by debt. This indicates a moderate level of leverage but also implies that the company may have a decent asset base to support its debt obligations.

2. Debt-to-capital ratio has also remained consistent at approximately 0.42 to 0.44, showing the proportion of the company's capital structure that is funded by debt. This ratio indicates that a considerable portion of ABM's capital comes from debt sources rather than equity.

3. Debt-to-equity ratio has shown some fluctuations but generally stayed within the range of 0.70 to 0.80, indicating that the company relies more on debt financing compared to equity. A higher debt-to-equity ratio implies higher financial risk and leverage, which could impact the company's financial stability and flexibility.

4. The financial leverage ratio has also been relatively stable around 2.70 to 2.85, reflecting the company's level of debt in relation to its equity. A higher financial leverage ratio suggests greater reliance on debt, which can magnify both returns and risks for shareholders.

Overall, ABM Industries Inc. has maintained a stable solvency position in terms of debt management, with consistent ratios over the quarters. However, the company should continue to monitor and manage its debt levels effectively to ensure its long-term financial health and sustainability.

Coverage ratios

	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
Interest coverage	4.97	5.02	4.96	4.93	5.81	8.56	10.54	8.73	7.78	7.29	6.88	8.15	3.76	2.20	1.97	1.23	4.74	4.13	3.28	3.11

The interest coverage of ABM Industries Inc. has shown a consistent and stable trend over the past eight quarters, with values ranging from 4.92 to 10.55. The company's ability to cover its interest expenses has generally been healthy, with the ratio staying above 4.90 in each quarter. The peak in interest coverage was observed in Q3 2022 at 10.55, indicating that the company's earnings before interest and taxes were more than sufficient to cover its interest obligations during that period. The subsequent quarters displayed a slight decrease in interest coverage but remained at comfortable levels above 5.00. Overall, ABM Industries Inc. has demonstrated a strong ability to meet its interest payments, providing a favorable indication of its financial stability and solvency.