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 Investments

Microsoft Excel

Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

Waste Management Inc., adjustment to net income attributable to Waste Management, Inc.

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net income attributable to Waste Management, Inc. (as reported) 1,816 1,496 1,670 1,925 1,949
Add: Available-for-sale securities, net (6) 11 15 5 2
Net income attributable to Waste Management, Inc. (adjusted) 1,810 1,507 1,685 1,930 1,951

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).

Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)

Waste Management Inc., adjusted profitability ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net Profit Margin
Reported net profit margin 10.13% 9.83% 10.81% 12.91% 13.46%
Adjusted net profit margin 10.09% 9.90% 10.90% 12.94% 13.47%
Return on Equity (ROE)
Reported ROE 25.49% 20.08% 23.63% 30.68% 32.38%
Adjusted ROE 25.41% 20.22% 23.84% 30.76% 32.41%
Return on Assets (ROA)
Reported ROA 6.24% 5.10% 6.02% 8.50% 8.93%
Adjusted ROA 6.22% 5.14% 6.07% 8.52% 8.94%

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
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Waste Management Inc. adjusted net profit margin ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Waste Management Inc. adjusted ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Waste Management Inc. adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Waste Management Inc., Profitability Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
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%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Waste Management, Inc. 1,810 1,507 1,685 1,930 1,951
Operating revenues 17,931 15,218 15,455 14,914 14,485
Profitability Ratio
Adjusted net profit margin2 10.09% 9.90% 10.90% 12.94% 13.47%

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).

2021 Calculations

1 Net profit margin = 100 × Net income attributable to Waste Management, Inc. ÷ Operating revenues
= 100 × 1,816 ÷ 17,931 = 10.13%

2 Adjusted net profit margin = 100 × Adjusted net income attributable to Waste Management, Inc. ÷ Operating revenues
= 100 × 1,810 ÷ 17,931 = 10.09%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Waste Management Inc. adjusted net profit margin ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
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%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Waste Management, Inc. 1,810 1,507 1,685 1,930 1,951
Total Waste Management, Inc. stockholders’ equity 7,124 7,452 7,068 6,275 6,019
Profitability Ratio
Adjusted ROE2 25.41% 20.22% 23.84% 30.76% 32.41%

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).

2021 Calculations

1 ROE = 100 × Net income attributable to Waste Management, Inc. ÷ Total Waste Management, Inc. stockholders’ equity
= 100 × 1,816 ÷ 7,124 = 25.49%

2 Adjusted ROE = 100 × Adjusted net income attributable to Waste Management, Inc. ÷ Total Waste Management, Inc. stockholders’ equity
= 100 × 1,810 ÷ 7,124 = 25.41%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Waste Management Inc. adjusted ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
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%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Waste Management, Inc. 1,810 1,507 1,685 1,930 1,951
Total assets 29,097 29,345 27,743 22,650 21,829
Profitability Ratio
Adjusted ROA2 6.22% 5.14% 6.07% 8.52% 8.94%

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).

2021 Calculations

1 ROA = 100 × Net income attributable to Waste Management, Inc. ÷ Total assets
= 100 × 1,816 ÷ 29,097 = 6.24%

2 Adjusted ROA = 100 × Adjusted net income attributable to Waste Management, Inc. ÷ Total assets
= 100 × 1,810 ÷ 29,097 = 6.22%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Waste Management Inc. adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.