Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Waste Management Inc., profitability 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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Waste Management Inc. gross profit margin ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Waste Management Inc. operating profit margin ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Waste Management Inc. net profit margin ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Waste Management Inc. ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Waste Management Inc. ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Gross Profit Margin
Waste Management Inc., gross profit margin 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) | ||||||
| Gross profit | 6,820) | 5,877) | 5,959) | 5,665) | 5,464) | |
| Operating revenues | 17,931) | 15,218) | 15,455) | 14,914) | 14,485) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 38.03% | 38.62% | 38.56% | 37.98% | 37.72% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Cintas Corp. | 46.58% | 45.64% | 45.39% | — | — | |
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
Gross profit margin = 100 × Gross profit ÷ Operating revenues
= 100 × 6,820 ÷ 17,931 = 38.03%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Waste Management Inc. gross profit margin ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
Operating Profit Margin
Waste Management Inc., operating profit margin 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) | ||||||
| Income from operations | 2,965) | 2,434) | 2,706) | 2,789) | 2,636) | |
| Operating revenues | 17,931) | 15,218) | 15,455) | 14,914) | 14,485) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 16.54% | 15.99% | 17.51% | 18.70% | 18.20% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Cintas Corp. | 19.47% | 16.41% | 16.45% | — | — | |
| Operating Profit Margin, Industry | ||||||
| Industrials | 9.36% | 3.31% | — | — | — | |
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
Operating profit margin = 100 × Income from operations ÷ Operating revenues
= 100 × 2,965 ÷ 17,931 = 16.54%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Waste Management Inc. operating profit margin ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
Net Profit Margin
Waste Management Inc., net profit margin 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) | |
| Operating revenues | 17,931) | 15,218) | 15,455) | 14,914) | 14,485) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 10.13% | 9.83% | 10.81% | 12.91% | 13.46% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Cintas Corp. | 15.61% | 12.36% | 12.84% | — | — | |
| Net Profit Margin, Industry | ||||||
| Industrials | 5.96% | 0.25% | — | — | — | |
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 profit margin = 100 × Net income attributable to Waste Management, Inc. ÷ Operating revenues
= 100 × 1,816 ÷ 17,931 = 10.13%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Waste Management Inc. net profit margin ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
Return on Equity (ROE)
Waste Management Inc., ROE 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) | |
| Total Waste Management, Inc. stockholders’ equity | 7,124) | 7,452) | 7,068) | 6,275) | 6,019) | |
| Profitability Ratio | ||||||
| ROE1 | 25.49% | 20.08% | 23.63% | 30.68% | 32.38% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Cintas Corp. | 30.13% | 27.08% | 29.47% | — | — | |
| ROE, Industry | ||||||
| Industrials | 15.61% | 0.67% | — | — | — | |
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
ROE = 100 × Net income attributable to Waste Management, Inc. ÷ Total Waste Management, Inc. stockholders’ equity
= 100 × 1,816 ÷ 7,124 = 25.49%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Waste Management Inc. ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Return on Assets (ROA)
Waste Management Inc., ROA 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) | |
| Total assets | 29,097) | 29,345) | 27,743) | 22,650) | 21,829) | |
| Profitability Ratio | ||||||
| ROA1 | 6.24% | 5.10% | 6.02% | 8.50% | 8.93% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Cintas Corp. | 13.49% | 11.42% | 11.90% | — | — | |
| ROA, Industry | ||||||
| Industrials | 3.48% | 0.12% | — | — | — | |
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
ROA = 100 × Net income attributable to Waste Management, Inc. ÷ Total assets
= 100 × 1,816 ÷ 29,097 = 6.24%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Waste Management Inc. ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |