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ABM Industries (FRA:AB4) Operating Income : €279 Mil (TTM As of Jul. 2024)


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What is ABM Industries Operating Income?

ABM Industries's Operating Income for the three months ended in Jul. 2024 was €34 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jul. 2024 was €279 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. ABM Industries's Operating Income for the three months ended in Jul. 2024 was €34 Mil. ABM Industries's Revenue for the three months ended in Jul. 2024 was €1,931 Mil. Therefore, ABM Industries's Operating Margin % for the quarter that ended in Jul. 2024 was 1.79%.

Good Sign:

ABM Industries Inc operating margin is expanding. Margin expansion is usually a good sign.

ABM Industries's 5-Year average Growth Rate for Operating Margin % was 9.50% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. ABM Industries's annualized ROC % for the quarter that ended in Jul. 2024 was 0.91%. ABM Industries's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jul. 2024 was 35.75%.


ABM Industries Operating Income Historical Data

The historical data trend for ABM Industries's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

ABM Industries Operating Income Chart

ABM Industries Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 198.61 234.69 177.74 353.93 387.80

ABM Industries Quarterly Data
Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 125.57 100.76 68.02 75.68 34.48

ABM Industries Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Jul. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was €279 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


ABM Industries  (FRA:AB4) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

ABM Industries's annualized ROC % for the quarter that ended in Jul. 2024 is calculated as:

ROC % (Q: Jul. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Apr. 2024 ) + Invested Capital (Q: Jul. 2024 ))/ count )
=137.932 * ( 1 - 73.89% )/( (3980.293 + 3942.564)/ 2 )
=36.0140452/3961.4285
=0.91 %

where

Invested Capital(Q: Apr. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=4594.294 - 557.429 - ( 56.572 - max(0, 1098.921 - 1582.443+56.572))
=3980.293

Invested Capital(Q: Jul. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=4647.249 - 625.116 - ( 79.569 - max(0, 1148.904 - 1588.975+79.569))
=3942.564

Note: The Operating Income data used here is four times the quarterly (Jul. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

ABM Industries's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jul. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Jul. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Apr. 2024  Q: Jul. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=144.568/( ( (236.262 + max(204.948, 0)) + (234.833 + max(132.676, 0)) )/ 2 )
=144.568/( ( 441.21 + 367.509 )/ 2 )
=144.568/404.3595
=35.75 %

where Working Capital is:

Working Capital(Q: Apr. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1088.203 + 0 + 159.932) - (557.429 + 94.318 + 391.44)
=204.948

Working Capital(Q: Jul. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1078.187 + 0 + 149.456) - (625.116 + 73.207 + 396.644)
=132.676

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jul. 2024) EBIT data.

3. Operating Income is also linked to Operating Margin %:

ABM Industries's Operating Margin % for the quarter that ended in Jul. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Jul. 2024 )/Revenue (Q: Jul. 2024 )
=34.483/1930.852
=1.79 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


ABM Industries Operating Income Related Terms

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ABM Industries Business Description

Traded in Other Exchanges
Address
One Liberty Plaza, 7th Floor, New York, NY, USA, 10006
ABM Industries Inc is a provider of integrated facility solutions. It offers its solutions through five segments: Business and Industry, Manufacturing and Distribution, Education, Aviation and Technical solutions. The company derives the majority of its revenue from the business and industry segment, which encompasses janitorial, facilities engineering, and parking services for commercial real estate properties and sports and entertainment venues, as well as vehicle maintenance and other services to rental car providers. The company mainly operates in the United States of America.

ABM Industries Headlines

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