ABM Industries Incorporated (ABM)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.26 | 0.26 | 0.25 | 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 |
| Debt-to-capital ratio | 0.42 | 0.42 | 0.40 | 0.41 | 0.42 | 0.41 | 0.42 | 0.40 | 0.39 | 0.38 | 0.37 | 0.37 | 0.35 | 0.28 | 0.25 | 0.27 | 0.29 | 0.31 | 0.44 | 0.34 |
| Debt-to-equity ratio | 0.73 | 0.71 | 0.68 | 0.70 | 0.71 | 0.69 | 0.73 | 0.68 | 0.63 | 0.60 | 0.59 | 0.59 | 0.53 | 0.39 | 0.33 | 0.37 | 0.40 | 0.46 | 0.79 | 0.50 |
| 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 |
The solvency ratios of ABM Industries Incorporated indicate the company's ability to meet its long-term financial obligations and withstand financial distress.
The debt-to-assets ratio has been relatively stable around 0.25 to 0.27 over the past few quarters, suggesting that the company's assets are financed to a reasonable extent by debt. This indicates a moderate level of financial leverage which may be acceptable for the company.
The debt-to-capital ratio has also shown stability, hovering around 0.40 to 0.42. This ratio indicates the proportion of the company's capital that is financed through debt, with the remaining portion coming from equity. ABM Industries Incorporated's reliance on debt for its capital structure appears to be consistent and within manageable levels.
The debt-to-equity ratio has shown a decreasing trend from 0.79 to 0.50, reflecting a decreasing reliance on debt in comparison to equity. This could indicate improved financial strength and reduced financial risk over time.
The financial leverage ratio, which measures the company's total assets relative to its equity, has varied between 2.37 to 2.92. A higher financial leverage ratio indicates a higher level of financial risk, while a lower ratio suggests a more conservative financial structure. ABM Industries Incorporated's financial leverage ratio fluctuates but generally remains within a manageable range.
Overall, based on the solvency ratios analysis, ABM Industries Incorporated appears to have a stable and reasonable level of debt and financial leverage, indicating a sound financial position and ability to meet its long-term obligations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.53 | 3.63 | 4.87 | 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 |
Interest coverage measures a company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates that the company is more capable of meeting its interest payment obligations.
ABM Industries Incorporated's interest coverage ratio has shown variability over the provided periods, ranging from a low of 1.23 to a high of 10.54. The trend appears to be fluctuating over time, with some periods showing stronger interest coverage than others.
The ratios above 1 indicate that ABM Industries has generated enough earnings to cover its interest expenses during those periods. A ratio below 1 would suggest that the company is not generating enough earnings to cover its interest obligations, which could be a cause for concern for creditors and investors.
It is noteworthy that the interest coverage ratio has generally been above 2, which is considered a common threshold for indicating a healthy level of interest coverage. However, the company experienced a decline in interest coverage in some periods, notably in Jan 2020 and Oct 2020, which may warrant further investigation into the company's financial health and ability to manage its debt obligations.
Overall, while the variability in ABM Industries' interest coverage ratio suggests some fluctuations in its ability to cover interest payments over time, the company has generally shown a moderate to strong ability to meet its interest obligations based on the data provided.