Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Waste Management Inc., solvency ratios
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).
| 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. |
| 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. |
Debt to Equity
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, Competitors2 | ||||||
| Cintas Corp. | 0.69 | 0.79 | 0.95 | — | — | |
| Debt to Equity, Industry | ||||||
| Industrials | 1.36 | 1.80 | — | — | — | |
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 Click competitor name to see calculations.
| 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 (including Operating Lease Liability)
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), Competitors2 | ||||||
| Cintas Corp. | 0.74 | 0.84 | 0.95 | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Industrials | 1.52 | 1.98 | — | — | — | |
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
2 Click competitor name to see calculations.
| 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. |
Debt to Capital
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, Competitors2 | ||||||
| Cintas Corp. | 0.41 | 0.44 | 0.49 | — | — | |
| Debt to Capital, Industry | ||||||
| Industrials | 0.58 | 0.64 | — | — | — | |
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 Click competitor name to see calculations.
| 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. |
Debt to Capital (including Operating Lease Liability)
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), Competitors2 | ||||||
| Cintas Corp. | 0.42 | 0.46 | 0.49 | — | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Industrials | 0.60 | 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
2 Click competitor name to see calculations.
| 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. |
Debt to Assets
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, Competitors2 | ||||||
| Cintas Corp. | 0.31 | 0.33 | 0.38 | — | — | |
| Debt to Assets, Industry | ||||||
| Industrials | 0.30 | 0.33 | — | — | — | |
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
2 Click competitor name to see calculations.
| 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. |
Debt to Assets (including Operating Lease Liability)
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), Competitors2 | ||||||
| Cintas Corp. | 0.33 | 0.35 | 0.38 | — | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Industrials | 0.34 | 0.36 | — | — | — | |
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).
1 2021 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 13,928 ÷ 29,097 = 0.48
2 Click competitor name to see calculations.
| 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. |
Financial Leverage
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, Competitors2 | ||||||
| Cintas Corp. | 2.23 | 2.37 | 2.48 | — | — | |
| Financial Leverage, Industry | ||||||
| Industrials | 4.49 | 5.44 | — | — | — | |
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 Click competitor name to see calculations.
| 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. |
Interest Coverage
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, Competitors2 | ||||||
| Cintas Corp. | 14.11 | 11.04 | 11.84 | — | — | |
| Interest Coverage, Industry | ||||||
| Industrials | 5.21 | 1.33 | — | — | — | |
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
2 Click competitor name to see calculations.
| 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
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, Competitors2 | ||||||
| Cintas Corp. | 8.61 | 7.02 | 7.43 | — | — | |
| Fixed Charge Coverage, Industry | ||||||
| Industrials | 3.49 | 1.17 | — | — | — | |
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
2 Click competitor name to see calculations.
| 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. |