Waste Management Inc. (NYSE:WM)

The analysis of the annual property, plant, and equipment data reveals several notable trends and developments over the five-year period under review.

Land

The value of land remained relatively stable with a slight upward trend from 624 million US dollars in 2017 to 732 million in 2021. There was a minor plateau between 2018 and 2019, followed by a modest increase in 2020 before a slight decrease in 2021.

Landfills

The investment in landfills showed a consistent and steady increase from 14,904 million US dollars in 2017 to 17,734 million in 2021. This steady rise suggests continuous expansion or enhancement of landfill assets, reflecting ongoing emphasis on core waste management operations.

Vehicles

Vehicles' value increased over the period from 4,750 million US dollars in 2017 to 5,893 million in 2021, indicating gradual fleet growth or replacement. The most significant growth occurred between 2019 and 2020, with a smaller increase thereafter.

Machinery and Equipment

There was a clear upward trajectory in machinery and equipment values, rising from 2,824 million US dollars in 2017 to 3,571 million in 2021. This reflects ongoing investment likely aimed at enhancing operational capabilities or efficiencies.

Containers

Values for containers showed steady growth from 2,571 million US dollars in 2017 to 2,807 million in 2021. The increases are moderate but consistent, reinforcing steady asset addition or replacement.

Buildings and Improvements

Buildings and improvements values rose steadily from 2,846 million US dollars in 2017 to 3,542 million in 2021, indicating ongoing investment in facilities and infrastructure.

Furniture, Fixtures, and Office Equipment

Unlike other categories, this segment exhibited a mild decline overall, dropping from 744 million US dollars in 2017 to 677 million in 2021. There was a dip in 2018, some recovery in 2019 and 2020, followed by another decline in the final year, suggesting either disposals or reduced investment.

Property and Equipment, Gross

The aggregate gross value of property and equipment increased steadily from 29,263 million US dollars in 2017 to 34,956 million in 2021. This represents an overall expansion of capital assets aligned with the growth observed across most individual asset categories.

Accumulated Depreciation and Amortization

The accumulated depreciation and amortization figures increased from -17,704 million US dollars in 2017 to -20,537 million in 2021, reflecting systematic valuation write-downs consistent with asset aging and usage over time. The increase is relatively proportional to asset growth.

Property and Equipment, Net

The net value of property and equipment rose from 11,559 million US dollars in 2017 to 14,419 million in 2021, demonstrating asset base growth after accounting for depreciation. The increase was steady each year, indicating sustained investment exceeding depreciation charges.

In summary, the overall pattern highlights a consistent and sustained investment in primary operational assets such as landfills, vehicles, machinery, and buildings, contributing to growth in the company's net asset base. The slight decline in furniture and office equipment may indicate a strategic reallocation of capital or efficiency measures. Accumulated depreciation trends align with asset additions, reflecting normal asset lifecycle accounting.

Average Age Ratio

The average age ratio exhibited a slight downward trend from 61.82% in 2017 to 59.05% in 2020, indicating a gradual decrease in the relative age of property, plant, and equipment over this period. However, in 2021, the ratio increased slightly to 60.01%, suggesting a minor reversal in this trend.

Estimated Total Useful Life

The estimated total useful life showed a declining pattern, starting at 22 years in 2017 and decreasing to 18 years by 2021. This reduction may reflect shortened asset lifespans due to changing operational conditions or updated management estimates.

Estimated Age (Time Elapsed Since Purchase)

The estimated age of assets consistently decreased, moving from 14 years in 2017 down to 11 years in 2021. This suggests an increasing proportion of newer assets within the portfolio or accelerated replacement cycles.

Estimated Remaining Life

The estimated remaining life fluctuated slightly, beginning at 9 years in 2017, dipping to 8 years in 2018 and 2019, rising back to 9 years in 2020, then declining to its lowest point of 7 years in 2021. This underscores some variability in asset longevity expectations, possibly linked to changes in asset composition or revised usage estimates.

Overall Insights

The data collectively indicate that while assets are, on average, being refreshed with younger equipment, the total expected lifespan of property, plant, and equipment is being revised downward. The slight increase in average age ratio in 2021 may signal retention of older assets or slower replacement activities that year. These trends may have implications for future capital expenditure and maintenance planning.

The data reveals several notable trends in property, plant, and equipment over the five-year period under consideration.

Accumulated Depreciation and Amortization

The accumulated depreciation of tangible property and equipment, alongside the amortization of landfill airspace, showed a consistent and steady increase each year. Starting from approximately $17.7 billion in 2017, this figure rose to about $20.5 billion by the end of 2021. Such a steady rise indicates ongoing usage and wear of the company’s tangible assets, reflecting continued depreciation charges being recorded annually.

Property and Equipment, Gross

The gross value of property and equipment also increased progressively, moving from roughly $29.3 billion in 2017 to nearly $35.0 billion in 2021. This upward trend suggests sustained investment in acquiring or upgrading assets throughout the period. The increase is consistent with efforts to expand or maintain operational capacity.

Land

The value of land showed limited variability, with a modest increase from $624 million in 2017 to $732 million in 2021, peaking at $740 million in 2020. The relative stability in land value is expected given land is a non-depreciable asset and less subject to frequent revaluation.

Average Age Ratio

The average age ratio, expressed as a percentage, declined slightly over the period, moving from 61.82% in 2017 to 60.01% in 2021, with the lowest point at 59.05% in 2020. This ratio suggests that the asset base is moderately aging but with some infusion of newer assets reducing the overall average age slightly. The minimal fluctuations imply a fairly balanced replacement or addition cycle relative to asset depreciation.

Overall, the data reflects a company actively investing in its tangible assets while simultaneously recognizing consistent depreciation. The gradual increase in gross property and equipment alongside rising accumulated depreciation indicates asset renewal and expansion efforts. The modest changes in the average age ratio further support a pattern of ongoing asset management aimed at maintaining operational efficiency.

The financial data of property, plant, and equipment displays several notable trends over the five-year period examined. First, the gross value of property and equipment shows a steady increase, rising from 29,263 million US dollars at the end of 2017 to 34,956 million US dollars by the end of 2021. This indicates ongoing investments or additions to the company's asset base.

Regarding land assets, the values increased from 624 million US dollars in 2017 to 656 million in 2018, remaining stable in 2019, and then rising to 740 million in 2020 before slightly decreasing to 732 million in 2021. This reflects relative stability in land holdings with minor adjustments during the period.

The depreciation and amortization expense related to tangible property and landfill airspace shows a consistent upward trajectory, increasing from 1,280 million US dollars in 2017 to 1,856 million US dollars in 2021. This increase suggests accelerated usage or aging of fixed assets as well as possibly reflecting increased asset base or revised depreciation estimates.

Notably, the estimated useful life of the assets decreased over the years, starting at 22 years in 2017 and dropping to 18 years in 2021. This reduction may indicate a reassessment of asset longevity, possibly due to changing operational conditions, technological obsolescence, or regulatory factors affecting asset utility.

Gross Property and Equipment

Consistently increased, suggesting ongoing asset acquisitions or capital expenditures.

Land

Relatively stable with minor fluctuations, indicating static land asset holdings.

Depreciation and Amortization

Steadily rising, pointing to asset aging and increasing expense recognition.

Estimated Useful Life

Declining over time, reflecting shorter expected asset service periods.

The analysis of the annual data regarding property, plant, and equipment reveals several important trends over the five-year period.

Accumulated Depreciation and Amortization

There is a consistent increase in the accumulated depreciation and amortization figures. Starting at 17,704 million US dollars in 2017, the value rises steadily each year, reaching 20,537 million US dollars by 2021. This upward trajectory indicates ongoing depreciation of the company's tangible assets and amortization of landfill airspace, reflecting continuous usage and the passage of time on asset value.

Annual Depreciation and Amortization Expense

The yearly depreciation expense also shows a clear ascending pattern. It increased from 1,280 million US dollars in 2017 to 1,856 million US dollars in 2021. Notably, the growth rate was particularly pronounced between 2020 and 2021. This increase may suggest accelerated asset usage, changes in depreciation methods, additions of assets with higher depreciation rates, or impairments.

Time Elapsed Since Purchase

The average age of the assets, as measured by time elapsed since purchase, decreases from 14 years in 2017 to 11 years in 2021. This decrease signals a trend of asset renewal or acquisition of newer assets, which could lead to future changes in depreciation patterns as newer assets typically carry lower accumulated depreciation.

In summary, the company is experiencing a gradual rise in both accumulated and annual depreciation, alongside a reduction in the average age of assets. This suggests active management of the asset base, likely through acquisitions or replacements that maintain or improve operational capacity while also affecting depreciation expenses.

Net Property and Equipment

The net value of property and equipment exhibited a consistent upward trend over the five-year period, increasing from 11,559 million US dollars at the end of 2017 to 14,419 million US dollars by the end of 2021. This represents a growth of approximately 25%, demonstrating ongoing investment or capital expansion.

Land Value

The value of land showed minor fluctuations. It rose from 624 million US dollars in 2017 to 656 million in 2018 and remained stable in 2019. It then increased to 740 million in 2020 before slightly declining to 732 million in 2021. Overall, land values experienced modest growth with a minor decrease in the final year.

Depreciation and Amortization

Depreciation of tangible property and equipment combined with amortization of landfill airspace increased steadily throughout the period. The expense grew from 1,280 million US dollars in 2017 to 1,856 million in 2021, an approximate increase of 45%. This rise indicates accelerating consumption of asset value or potential additions of depreciable assets.

Estimated Remaining Life

The estimated remaining life of the assets fluctuated between 7 and 9 years across the years. It decreased from 9 years in 2017 to 8 years in both 2018 and 2019, then rose again to 9 years in 2020 before dropping to 7 years in 2021. The overall decreasing trend towards the end of the period could reflect aging assets or changes in asset management assumptions.