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.

Analysis of Long-term (Investment) Activity Ratios 

Microsoft Excel

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

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net fixed asset turnover 1.24 1.08 1.20 1.25 1.25
Net fixed asset turnover (including operating lease, right-of-use asset) 1.21 1.04 1.16 1.25 1.25
Total asset turnover 0.62 0.52 0.56 0.66 0.66
Equity turnover 2.52 2.04 2.19 2.38 2.41

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).

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

Microsoft Excel
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, Industry
Industrials 3.04 2.41 2.76 — —

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
Net fixed asset turnover = Operating revenues ÷ Property and equipment, net of accumulated depreciation and amortization
= 17,931 ÷ 14,419 = 1.24

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

Microsoft Excel
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), Industry
Industrials 2.62 2.13 2.57 — —

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

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

Microsoft Excel
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, Industry
Industrials 0.60 0.51 0.61 — —

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

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

Microsoft Excel
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, Industry
Industrials 2.58 2.75 3.53 — —

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

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.