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 Property, Plant and Equipment

Microsoft Excel

Property, Plant and Equipment Disclosure

Waste Management Inc., balance sheet: property, plant and equipment

US$ in millions

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Land 732 740 656 656 624
Landfills 17,734 16,842 15,910 15,240 14,904
Vehicles 5,893 5,800 5,344 5,059 4,750
Machinery and equipment 3,571 3,217 3,140 2,988 2,824
Containers 2,807 2,694 2,616 2,588 2,571
Buildings and improvements 3,542 3,463 3,174 2,998 2,846
Furniture, fixtures and office equipment 677 729 710 677 744
Property and equipment, gross 34,956 33,485 31,550 30,206 29,263
Accumulated depreciation of tangible property and equipment and accumulated amortization of landfill airspace (20,537) (19,337) (18,657) (18,264) (17,704)
Property and equipment, net 14,419 14,148 12,893 11,942 11,559

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).

Item Description The company
Property and equipment, gross Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. Waste Management Inc. property and equipment, gross increased from 2019 to 2020 and from 2020 to 2021.
Property and equipment, net Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. Waste Management Inc. property and equipment, net increased from 2019 to 2020 and from 2020 to 2021.

Asset Age Ratios (Summary)

Waste Management Inc., asset age ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Average age ratio 60.01% 59.05% 60.39% 61.81% 61.82%
Estimated total useful life (years) 18 21 21 21 22
Estimated age, time elapsed since purchase (years) 11 12 13 13 14
Estimated remaining life (years) 7 9 8 8 9

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).

Asset age ratio Description The company
Average age ratio As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient. Waste Management Inc. average age ratio of depreciable property, plant and equipment improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level.
Estimated total useful life Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors. Waste Management Inc. estimated total useful life of depreciable property, plant and equipment decreased from 2019 to 2020 and from 2020 to 2021.
Estimated time elapsed since purchase The approximate age in years of a company fixed assets. Useful for comparison purposes. Waste Management Inc. estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2019 to 2020 and from 2020 to 2021.
Estimated remaining life Waste Management Inc. estimated remaining life of depreciable property, plant and equipment increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

Average Age

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Accumulated depreciation of tangible property and equipment and accumulated amortization of landfill airspace 20,537 19,337 18,657 18,264 17,704
Property and equipment, gross 34,956 33,485 31,550 30,206 29,263
Land 732 740 656 656 624
Asset Age Ratio
Average age1 60.01% 59.05% 60.39% 61.81% 61.82%

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 Average age = 100 × Accumulated depreciation of tangible property and equipment and accumulated amortization of landfill airspace ÷ (Property and equipment, gross – Land)
= 100 × 20,537 ÷ (34,956732) = 60.01%

Asset age ratio Description The company
Average age As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient. Waste Management Inc. average age ratio of depreciable property, plant and equipment improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level.

Estimated Total Useful Life

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Property and equipment, gross 34,956 33,485 31,550 30,206 29,263
Land 732 740 656 656 624
Depreciation of tangible property and equipment and amortization of landfill airspace 1,856 1,564 1,468 1,376 1,280
Asset Age Ratio (Years)
Estimated total useful life1 18 21 21 21 22

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 Estimated total useful life = (Property and equipment, gross – Land) ÷ Depreciation of tangible property and equipment and amortization of landfill airspace
= (34,956732) ÷ 1,856 = 18

Asset age ratio Description The company
Estimated total useful life Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors. Waste Management Inc. estimated total useful life of depreciable property, plant and equipment decreased from 2019 to 2020 and from 2020 to 2021.

Estimated Age, Time Elapsed since Purchase

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Accumulated depreciation of tangible property and equipment and accumulated amortization of landfill airspace 20,537 19,337 18,657 18,264 17,704
Depreciation of tangible property and equipment and amortization of landfill airspace 1,856 1,564 1,468 1,376 1,280
Asset Age Ratio (Years)
Time elapsed since purchase1 11 12 13 13 14

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 Time elapsed since purchase = Accumulated depreciation of tangible property and equipment and accumulated amortization of landfill airspace ÷ Depreciation of tangible property and equipment and amortization of landfill airspace
= 20,537 ÷ 1,856 = 11

Asset age ratio Description The company
Estimated time elapsed since purchase The approximate age in years of a company fixed assets. Useful for comparison purposes. Waste Management Inc. estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2019 to 2020 and from 2020 to 2021.

Estimated Remaining Life

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Property and equipment, net 14,419 14,148 12,893 11,942 11,559
Land 732 740 656 656 624
Depreciation of tangible property and equipment and amortization of landfill airspace 1,856 1,564 1,468 1,376 1,280
Asset Age Ratio (Years)
Estimated remaining life1 7 9 8 8 9

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 Estimated remaining life = (Property and equipment, net – Land) ÷ Depreciation of tangible property and equipment and amortization of landfill airspace
= (14,419732) ÷ 1,856 = 7

Asset age ratio Description The company
Estimated remaining life Waste Management Inc. estimated remaining life of depreciable property, plant and equipment increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.