Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.

Solvency Ratios (Summary)
Debt to Equity
Debt to Equity (including Operating Lease Liability)
Debt to Capital
Debt to Capital (including Operating Lease Liability)
Debt to Assets
Debt to Assets (including Operating Lease Liability)
Financial Leverage
Interest Coverage
Fixed Charge Coverage

Waste Management Inc., solvency ratios

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Debt Ratios
Debt to equity	1.88	1.85	1.91	1.60	1.58
Debt to equity (including operating lease liability)	1.96	1.92	1.97	1.60	1.58
Debt to capital	0.65	0.65	0.66	0.62	0.61
Debt to capital (including operating lease liability)	0.66	0.66	0.66	0.62	0.61
Debt to assets	0.46	0.47	0.49	0.44	0.43
Debt to assets (including operating lease liability)	0.48	0.49	0.50	0.44	0.43
Financial leverage	4.08	3.94	3.93	3.61	3.63
Coverage Ratios
Interest coverage	7.26	5.14	5.54	7.19	6.95
Fixed charge coverage	5.43	4.17	4.53	5.63	5.36

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).

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Solvency ratio	Description	The company
Debt to equity ratio	A solvency ratio calculated as total debt divided by total shareholders’ equity.	Waste Management Inc. debt to equity ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level.
Debt to equity ratio (including operating lease liability)	A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity.	Waste Management Inc. debt to equity ratio (including operating lease liability) improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level.
Debt to capital ratio	A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity.	Waste Management Inc. debt to capital ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level.
Debt to capital ratio (including operating lease liability)	A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity.	Waste Management Inc. debt to capital ratio (including operating lease liability) improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level.
Debt to assets ratio	A solvency ratio calculated as total debt divided by total assets.	Waste Management Inc. debt to assets ratio improved from 2019 to 2020 and from 2020 to 2021.
Debt to assets ratio (including operating lease liability)	A solvency ratio calculated as total debt (including operating lease liability) divided by total assets.	Waste Management Inc. debt to assets ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.
Financial leverage ratio	A solvency ratio calculated as total assets divided by total shareholders’ equity.	Waste Management Inc. financial leverage ratio increased from 2019 to 2020 and from 2020 to 2021.

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Solvency ratio	Description	The company
Interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments.	Waste Management Inc. interest coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Fixed charge coverage ratio	A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges.	Waste Management Inc. fixed charge coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Waste Management Inc., debt to equity 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 portion of long-term debt	708)	551)	218)	432)	739)
Long-term debt, less current portion	12,697)	13,259)	13,280)	9,594)	8,752)
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
Benchmarks
Debt to Equity, Industry
Industrials	1.25	1.73	1.86	—	—

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

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Solvency ratio	Description	The company
Debt to equity ratio	A solvency ratio calculated as total debt divided by total shareholders’ equity.	Waste Management Inc. debt to equity ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level.

Waste Management Inc., debt to equity (including operating lease liability) 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 portion of long-term debt	708)	551)	218)	432)	739)
Long-term debt, less current portion	12,697)	13,259)	13,280)	9,594)	8,752)
Total debt	13,405)	13,810)	13,498)	10,026)	9,491)
Current operating lease liabilities (classified in Accrued liabilities)	64)	63)	79)	—)	—)
Long-term operating lease liabilities (classified in Other liabilities)	459)	453)	366)	—)	—)
Total debt (including operating lease liability)	13,928)	14,326)	13,943)	10,026)	9,491)

Total Waste Management, Inc. stockholders’ equity	7,124)	7,452)	7,068)	6,275)	6,019)
Solvency Ratio
Debt to equity (including operating lease liability)¹	1.96	1.92	1.97	1.60	1.58
Benchmarks
Debt to Equity (including Operating Lease Liability), Industry
Industrials	1.39	1.89	1.96	—	—

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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Waste Management, Inc. stockholders’ equity
= 13,928 ÷ 7,124 = 1.96

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Solvency ratio	Description	The company
Debt to equity ratio (including operating lease liability)	A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity.	Waste Management Inc. debt to equity ratio (including operating lease liability) improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level.

Waste Management Inc., debt to capital 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 portion of long-term debt	708)	551)	218)	432)	739)
Long-term debt, less current portion	12,697)	13,259)	13,280)	9,594)	8,752)
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)
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
Benchmarks
Debt to Capital, Industry
Industrials	0.56	0.63	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
Debt to capital = Total debt ÷ Total capital
= 13,405 ÷ 20,529 = 0.65

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Solvency ratio	Description	The company
Debt to capital ratio	A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity.	Waste Management Inc. debt to capital ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level.

Waste Management Inc., debt to capital (including operating lease liability) 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 portion of long-term debt	708)	551)	218)	432)	739)
Long-term debt, less current portion	12,697)	13,259)	13,280)	9,594)	8,752)
Total debt	13,405)	13,810)	13,498)	10,026)	9,491)
Current operating lease liabilities (classified in Accrued liabilities)	64)	63)	79)	—)	—)
Long-term operating lease liabilities (classified in Other liabilities)	459)	453)	366)	—)	—)
Total debt (including operating lease liability)	13,928)	14,326)	13,943)	10,026)	9,491)
Total Waste Management, Inc. stockholders’ equity	7,124)	7,452)	7,068)	6,275)	6,019)
Total capital (including operating lease liability)	21,052)	21,778)	21,011)	16,301)	15,510)
Solvency Ratio
Debt to capital (including operating lease liability)¹	0.66	0.66	0.66	0.62	0.61
Benchmarks
Debt to Capital (including Operating Lease Liability), Industry
Industrials	0.58	0.65	0.66	—	—

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 (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 13,928 ÷ 21,052 = 0.66

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Solvency ratio	Description	The company
Debt to capital ratio (including operating lease liability)	A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity.	Waste Management Inc. debt to capital ratio (including operating lease liability) improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level.

Waste Management Inc., debt to assets 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 portion of long-term debt	708)	551)	218)	432)	739)
Long-term debt, less current portion	12,697)	13,259)	13,280)	9,594)	8,752)
Total debt	13,405)	13,810)	13,498)	10,026)	9,491)

Total assets	29,097)	29,345)	27,743)	22,650)	21,829)
Solvency Ratio
Debt to assets¹	0.46	0.47	0.49	0.44	0.43
Benchmarks
Debt to Assets, Industry
Industrials	0.29	0.32	0.32	—	—

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 assets = Total debt ÷ Total assets
= 13,405 ÷ 29,097 = 0.46

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Solvency ratio	Description	The company
Debt to assets ratio	A solvency ratio calculated as total debt divided by total assets.	Waste Management Inc. debt to assets ratio improved from 2019 to 2020 and from 2020 to 2021.

Waste Management Inc., debt to assets (including operating lease liability) 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 portion of long-term debt	708)	551)	218)	432)	739)
Long-term debt, less current portion	12,697)	13,259)	13,280)	9,594)	8,752)
Total debt	13,405)	13,810)	13,498)	10,026)	9,491)
Current operating lease liabilities (classified in Accrued liabilities)	64)	63)	79)	—)	—)
Long-term operating lease liabilities (classified in Other liabilities)	459)	453)	366)	—)	—)
Total debt (including operating lease liability)	13,928)	14,326)	13,943)	10,026)	9,491)

Total assets	29,097)	29,345)	27,743)	22,650)	21,829)
Solvency Ratio
Debt to assets (including operating lease liability)¹	0.48	0.49	0.50	0.44	0.43
Benchmarks
Debt to Assets (including Operating Lease Liability), Industry
Industrials	0.32	0.35	0.34	—	—

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 assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 13,928 ÷ 29,097 = 0.48

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Solvency ratio	Description	The company
Debt to assets ratio (including operating lease liability)	A solvency ratio calculated as total debt (including operating lease liability) divided by total assets.	Waste Management Inc. debt to assets ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.

Waste Management Inc., financial leverage 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)
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
Benchmarks
Financial Leverage, Industry
Industrials	4.33	5.35	5.76	—	—

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

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Solvency ratio	Description	The company
Financial leverage ratio	A solvency ratio calculated as total assets divided by total shareholders’ equity.	Waste Management Inc. financial leverage ratio increased from 2019 to 2020 and from 2020 to 2021.

Waste Management Inc., interest coverage 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)
Net income attributable to Waste Management, Inc.	1,816)	1,496)	1,670)	1,925)	1,949)
Add: Net income attributable to noncontrolling interest	1)	—)	1)	(2)	—)
Add: Income tax expense	532)	397)	434)	453)	242)
Add: Interest expense	375)	457)	464)	384)	368)
Earnings before interest and tax (EBIT)	2,724)	2,350)	2,569)	2,760)	2,559)
Solvency Ratio
Interest coverage¹	7.26	5.14	5.54	7.19	6.95
Benchmarks
Interest Coverage, Industry
Industrials	6.00	2.04	4.37	—	—

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
Interest coverage = EBIT ÷ Interest expense
= 2,724 ÷ 375 = 7.26

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Solvency ratio	Description	The company
Interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments.	Waste Management Inc. interest coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Waste Management Inc., fixed charge coverage 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)
Net income attributable to Waste Management, Inc.	1,816)	1,496)	1,670)	1,925)	1,949)
Add: Net income attributable to noncontrolling interest	1)	—)	1)	(2)	—)
Add: Income tax expense	532)	397)	434)	453)	242)
Add: Interest expense	375)	457)	464)	384)	368)
Earnings before interest and tax (EBIT)	2,724)	2,350)	2,569)	2,760)	2,559)
Add: Operating lease expense	155)	140)	132)	129)	134)
Earnings before fixed charges and tax	2,879)	2,490)	2,701)	2,889)	2,693)

Interest expense	375)	457)	464)	384)	368)
Operating lease expense	155)	140)	132)	129)	134)
Fixed charges	530)	597)	596)	513)	502)
Solvency Ratio
Fixed charge coverage¹	5.43	4.17	4.53	5.63	5.36
Benchmarks
Fixed Charge Coverage, Industry
Industrials	3.93	1.59	2.96	—	—

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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 2,879 ÷ 530 = 5.43

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Solvency ratio	Description	The company
Fixed charge coverage ratio	A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges.	Waste Management Inc. fixed charge coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Waste Management Inc. (NYSE:WM)

Analysis of Solvency Ratios

Solvency Ratios (Summary)

Debt to Equity

Debt to Equity (including Operating Lease Liability)

Debt to Capital

Debt to Capital (including Operating Lease Liability)

Debt to Assets

Debt to Assets (including Operating Lease Liability)

Financial Leverage

Interest Coverage

Fixed Charge Coverage