Stock Analysis on Net
Stock Analysis on Net

Waste Management Inc. (NYSE:WM)

This company has been moved to the archive! The financial data has not been updated since February 15, 2022.

Adjusted Financial Ratios

Microsoft Excel

Adjusted Financial Ratios (Summary)

Waste Management Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Activity Ratio
Total Asset Turnover
Reported 0.62 0.52 0.56 0.66 0.66
Adjusted 0.62 0.52 0.56 0.64 0.65
Liquidity Ratio
Current Ratio
Reported 0.75 1.00 1.97 0.85 0.80
Adjusted 0.88 1.19 2.39 1.03 0.96
Solvency Ratios
Debt to Equity
Reported 1.88 1.85 1.91 1.60 1.58
Adjusted 1.48 1.46 1.54 1.30 1.28
Debt to Capital
Reported 0.65 0.65 0.66 0.62 0.61
Adjusted 0.60 0.59 0.61 0.56 0.56
Financial Leverage
Reported 4.08 3.94 3.93 3.61 3.63
Adjusted 3.09 2.99 3.07 2.85 2.86
Profitability Ratios
Net Profit Margin
Reported 10.13% 9.83% 10.81% 12.91% 13.46%
Adjusted 9.70% 11.29% 12.03% 12.62% 12.37%
Return on Equity (ROE)
Reported 25.49% 20.08% 23.63% 30.68% 32.38%
Adjusted 18.50% 17.47% 20.59% 23.22% 22.95%
Return on Assets (ROA)
Reported 6.24% 5.10% 6.02% 8.50% 8.93%
Adjusted 5.98% 5.85% 6.70% 8.14% 8.03%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Waste Management Inc. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Waste Management Inc. adjusted current ratio deteriorated from 2019 to 2020 and from 2020 to 2021.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Waste Management Inc. adjusted debt-to-equity ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Waste Management Inc. adjusted debt-to-capital ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Waste Management Inc. adjusted financial leverage ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Waste Management Inc. adjusted net profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Waste Management Inc. adjusted ROE deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Waste Management Inc. adjusted ROA deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Waste Management Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Reported
Selected Financial Data (US$ in millions)
Operating revenues 17,931 15,218 15,455 14,914 14,485
Total assets 29,097 29,345 27,743 22,650 21,829
Activity Ratio
Total asset turnover1 0.62 0.52 0.56 0.66 0.66
Adjusted
Selected Financial Data (US$ in millions)
Adjusted operating revenues2 17,963 15,223 15,467 14,933 14,495
Adjusted total assets3 29,122 29,378 27,771 23,171 22,335
Activity Ratio
Adjusted total asset turnover4 0.62 0.52 0.56 0.64 0.65

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Total asset turnover = Operating revenues ÷ Total assets
= 17,931 ÷ 29,097 = 0.62

2 Adjusted operating revenues. See details »

3 Adjusted total assets. See details »

4 2021 Calculation
Adjusted total asset turnover = Adjusted operating revenues ÷ Adjusted total assets
= 17,963 ÷ 29,122 = 0.62

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Waste Management Inc. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Adjusted Current Ratio

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Reported
Selected Financial Data (US$ in millions)
Current assets 3,069 3,540 6,209 2,645 2,624
Current liabilities 4,082 3,553 3,144 3,108 3,262
Liquidity Ratio
Current ratio1 0.75 1.00 1.97 0.85 0.80
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 3,094 3,573 6,237 2,674 2,645
Adjusted current liabilities3 3,511 3,014 2,610 2,586 2,759
Liquidity Ratio
Adjusted current ratio4 0.88 1.19 2.39 1.03 0.96

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Current ratio = Current assets ÷ Current liabilities
= 3,069 ÷ 4,082 = 0.75

2 Adjusted current assets. See details »

3 Adjusted current liabilities. See details »

4 2021 Calculation
Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 3,094 ÷ 3,511 = 0.88

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Waste Management Inc. adjusted current ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Reported
Selected Financial Data (US$ in millions)
Total debt 13,405 13,810 13,498 10,026 9,491
Total Waste Management, Inc. stockholders’ equity 7,124 7,452 7,068 6,275 6,019
Solvency Ratio
Debt to equity1 1.88 1.85 1.91 1.60 1.58
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 13,928 14,326 13,943 10,518 9,976
Adjusted total equity3 9,416 9,832 9,039 8,118 7,814
Solvency Ratio
Adjusted debt to equity4 1.48 1.46 1.54 1.30 1.28

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Debt to equity = Total debt ÷ Total Waste Management, Inc. stockholders’ equity
= 13,405 ÷ 7,124 = 1.88

2 Adjusted total debt. See details »

3 Adjusted total equity. See details »

4 2021 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted total equity
= 13,928 ÷ 9,416 = 1.48

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Waste Management Inc. adjusted debt-to-equity ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021.

Adjusted Debt to Capital

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Reported
Selected Financial Data (US$ in millions)
Total debt 13,405 13,810 13,498 10,026 9,491
Total capital 20,529 21,262 20,566 16,301 15,510
Solvency Ratio
Debt to capital1 0.65 0.65 0.66 0.62 0.61
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 13,928 14,326 13,943 10,518 9,976
Adjusted total capital3 23,344 24,158 22,982 18,636 17,790
Solvency Ratio
Adjusted debt to capital4 0.60 0.59 0.61 0.56 0.56

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Debt to capital = Total debt ÷ Total capital
= 13,405 ÷ 20,529 = 0.65

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2021 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 13,928 ÷ 23,344 = 0.60

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Waste Management Inc. adjusted debt-to-capital ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Reported
Selected Financial Data (US$ in millions)
Total assets 29,097 29,345 27,743 22,650 21,829
Total Waste Management, Inc. stockholders’ equity 7,124 7,452 7,068 6,275 6,019
Solvency Ratio
Financial leverage1 4.08 3.94 3.93 3.61 3.63
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 29,122 29,378 27,771 23,171 22,335
Adjusted total equity3 9,416 9,832 9,039 8,118 7,814
Solvency Ratio
Adjusted financial leverage4 3.09 2.99 3.07 2.85 2.86

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Financial leverage = Total assets ÷ Total Waste Management, Inc. stockholders’ equity
= 29,097 ÷ 7,124 = 4.08

2 Adjusted total assets. See details »

3 Adjusted total equity. See details »

4 2021 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted total equity
= 29,122 ÷ 9,416 = 3.09

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Waste Management Inc. adjusted financial leverage ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Reported
Selected Financial Data (US$ in millions)
Net income attributable to Waste Management, Inc. 1,816 1,496 1,670 1,925 1,949
Operating revenues 17,931 15,218 15,455 14,914 14,485
Profitability Ratio
Net profit margin1 10.13% 9.83% 10.81% 12.91% 13.46%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted consolidated net income2 1,742 1,718 1,861 1,885 1,793
Adjusted operating revenues3 17,963 15,223 15,467 14,933 14,495
Profitability Ratio
Adjusted net profit margin4 9.70% 11.29% 12.03% 12.62% 12.37%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Net profit margin = 100 × Net income attributable to Waste Management, Inc. ÷ Operating revenues
= 100 × 1,816 ÷ 17,931 = 10.13%

2 Adjusted consolidated net income. See details »

3 Adjusted operating revenues. See details »

4 2021 Calculation
Adjusted net profit margin = 100 × Adjusted consolidated net income ÷ Adjusted operating revenues
= 100 × 1,742 ÷ 17,963 = 9.70%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Waste Management Inc. adjusted net profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Reported
Selected Financial Data (US$ in millions)
Net income attributable to Waste Management, Inc. 1,816 1,496 1,670 1,925 1,949
Total Waste Management, Inc. stockholders’ equity 7,124 7,452 7,068 6,275 6,019
Profitability Ratio
ROE1 25.49% 20.08% 23.63% 30.68% 32.38%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted consolidated net income2 1,742 1,718 1,861 1,885 1,793
Adjusted total equity3 9,416 9,832 9,039 8,118 7,814
Profitability Ratio
Adjusted ROE4 18.50% 17.47% 20.59% 23.22% 22.95%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
ROE = 100 × Net income attributable to Waste Management, Inc. ÷ Total Waste Management, Inc. stockholders’ equity
= 100 × 1,816 ÷ 7,124 = 25.49%

2 Adjusted consolidated net income. See details »

3 Adjusted total equity. See details »

4 2021 Calculation
Adjusted ROE = 100 × Adjusted consolidated net income ÷ Adjusted total equity
= 100 × 1,742 ÷ 9,416 = 18.50%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Waste Management Inc. adjusted ROE deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Reported
Selected Financial Data (US$ in millions)
Net income attributable to Waste Management, Inc. 1,816 1,496 1,670 1,925 1,949
Total assets 29,097 29,345 27,743 22,650 21,829
Profitability Ratio
ROA1 6.24% 5.10% 6.02% 8.50% 8.93%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted consolidated net income2 1,742 1,718 1,861 1,885 1,793
Adjusted total assets3 29,122 29,378 27,771 23,171 22,335
Profitability Ratio
Adjusted ROA4 5.98% 5.85% 6.70% 8.14% 8.03%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
ROA = 100 × Net income attributable to Waste Management, Inc. ÷ Total assets
= 100 × 1,816 ÷ 29,097 = 6.24%

2 Adjusted consolidated net income. See details »

3 Adjusted total assets. See details »

4 2021 Calculation
Adjusted ROA = 100 × Adjusted consolidated net income ÷ Adjusted total assets
= 100 × 1,742 ÷ 29,122 = 5.98%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Waste Management Inc. adjusted ROA deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.