Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Waste Management Inc., liquidity ratios
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Current ratio | 0.75 | 1.00 | 1.97 | 0.85 | 0.80 | |
| Quick ratio | 0.65 | 0.89 | 1.87 | 0.75 | 0.73 | |
| Cash ratio | 0.03 | 0.16 | 1.13 | 0.02 | 0.01 |
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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Waste Management Inc. current ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Waste Management Inc. quick ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Waste Management Inc. cash ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Current Ratio
Waste Management Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| 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 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Cintas Corp. | 1.47 | 2.61 | 1.98 | — | — | |
| Current Ratio, Industry | ||||||
| Industrials | 1.29 | 1.41 | — | — | — | |
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 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Waste Management Inc. current ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Quick Ratio
Waste Management Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 118) | 553) | 3,561) | 61) | 22) | |
| Accounts receivable, net of allowance for doubtful accounts | 2,278) | 2,097) | 1,949) | 1,931) | 1,805) | |
| Other receivables, net of allowance for doubtful accounts | 268) | 527) | 370) | 344) | 569) | |
| Total quick assets | 2,664) | 3,177) | 5,880) | 2,336) | 2,396) | |
| Current liabilities | 4,082) | 3,553) | 3,144) | 3,108) | 3,262) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.65 | 0.89 | 1.87 | 0.75 | 0.73 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Cintas Corp. | 0.72 | 1.15 | 0.89 | — | — | |
| Quick Ratio, Industry | ||||||
| Industrials | 0.80 | 0.88 | — | — | — | |
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
Quick ratio = Total quick assets ÷ Current liabilities
= 2,664 ÷ 4,082 = 0.65
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Waste Management Inc. quick ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Cash Ratio
Waste Management Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 118) | 553) | 3,561) | 61) | 22) | |
| Total cash assets | 118) | 553) | 3,561) | 61) | 22) | |
| Current liabilities | 4,082) | 3,553) | 3,144) | 3,108) | 3,262) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.03 | 0.16 | 1.13 | 0.02 | 0.01 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Cintas Corp. | 0.26 | 0.16 | 0.09 | — | — | |
| Cash Ratio, Industry | ||||||
| Industrials | 0.39 | 0.47 | — | — | — | |
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
Cash ratio = Total cash assets ÷ Current liabilities
= 118 ÷ 4,082 = 0.03
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Waste Management Inc. cash ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |