Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Waste Management Inc., long-term (investment) activity 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).
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Waste Management Inc. net fixed asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Waste Management Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Waste Management Inc. total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Waste Management Inc. equity turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Net Fixed Asset Turnover
Waste Management Inc., net fixed asset turnover 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) | ||||||
| Operating revenues | 17,931) | 15,218) | 15,455) | 14,914) | 14,485) | |
| Property and equipment, net of accumulated depreciation and amortization | 14,419) | 14,148) | 12,893) | 11,942) | 11,559) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 1.24 | 1.08 | 1.20 | 1.25 | 1.25 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Cintas Corp. | 5.40 | 5.05 | 4.82 | — | — | |
| Net Fixed Asset Turnover, Industry | ||||||
| Industrials | 2.73 | 2.19 | — | — | — | |
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 fixed asset turnover = Operating revenues ÷ Property and equipment, net of accumulated depreciation and amortization
= 17,931 ÷ 14,419 = 1.24
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Waste Management Inc. net fixed asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Waste Management Inc., net fixed asset turnover (including operating lease, right-of-use asset) 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) | ||||||
| Operating revenues | 17,931) | 15,218) | 15,455) | 14,914) | 14,485) | |
| Property and equipment, net of accumulated depreciation and amortization | 14,419) | 14,148) | 12,893) | 11,942) | 11,559) | |
| Operating lease assets (classified in Other assets) | 451) | 466) | 424) | —) | —) | |
| Property and equipment, net of accumulated depreciation and amortization (including operating lease, right-of-use asset) | 14,870) | 14,614) | 13,317) | 11,942) | 11,559) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 1.21 | 1.04 | 1.16 | 1.25 | 1.25 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Cintas Corp. | 4.79 | 4.53 | 4.82 | — | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Industrials | 2.36 | 1.93 | — | — | — | |
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 fixed asset turnover (including operating lease, right-of-use asset) = Operating revenues ÷ Property and equipment, net of accumulated depreciation and amortization (including operating lease, right-of-use asset)
= 17,931 ÷ 14,870 = 1.21
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Waste Management Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Total Asset Turnover
Waste Management Inc., total asset turnover 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) | ||||||
| Operating revenues | 17,931) | 15,218) | 15,455) | 14,914) | 14,485) | |
| Total assets | 29,097) | 29,345) | 27,743) | 22,650) | 21,829) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.62 | 0.52 | 0.56 | 0.66 | 0.66 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Cintas Corp. | 0.86 | 0.92 | 0.93 | — | — | |
| Total Asset Turnover, Industry | ||||||
| Industrials | 0.58 | 0.50 | — | — | — | |
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 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Waste Management Inc. total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Equity Turnover
Waste Management Inc., equity turnover 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) | ||||||
| Operating revenues | 17,931) | 15,218) | 15,455) | 14,914) | 14,485) | |
| Total Waste Management, Inc. stockholders’ equity | 7,124) | 7,452) | 7,068) | 6,275) | 6,019) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 2.52 | 2.04 | 2.19 | 2.38 | 2.41 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Cintas Corp. | 1.93 | 2.19 | 2.30 | — | — | |
| Equity Turnover, Industry | ||||||
| Industrials | 2.62 | 2.74 | — | — | — | |
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
Equity turnover = Operating revenues ÷ Total Waste Management, Inc. stockholders’ equity
= 17,931 ÷ 7,124 = 2.52
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Waste Management Inc. equity turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |