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Waste Management Inc. (NYSE:WM)

This company has been moved to the archive! The financial data has not been updated since February 15, 2022.

Common-Size Income Statement
Quarterly Data

Waste Management Inc., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017
Operating revenues 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Operating costs -63.17 -62.29 -61.13 -61.14 -61.47 -60.40 -61.22 -62.46 -60.17 -61.53 -61.91 -62.18 -61.92 -62.09 -61.86 -62.20 -61.97 -61.95 -62.28 -62.97
Gross profit 36.83% 37.71% 38.87% 38.86% 38.53% 39.60% 38.78% 37.54% 39.83% 38.47% 38.09% 37.82% 38.08% 37.91% 38.14% 37.80% 38.03% 38.05% 37.72% 37.03%
Selling, general and administrative -10.52 -10.05 -9.94 -11.14 -12.54 -10.77 -10.59 -11.40 -11.57 -9.73 -9.91 -11.07 -9.63 -9.03 -9.76 -10.62 -10.10 -9.58 -9.60 -11.34
Depreciation and amortization -10.90 -11.08 -11.17 -11.48 -10.72 -10.85 -11.63 -10.78 -10.27 -10.18 -10.36 -9.90 -9.63 -9.84 -10.27 -9.88 -9.36 -9.42 -9.68 -9.53
Restructuring -0.04 -0.02 -0.09 -0.02 0.00 -0.18 -0.06 0.00 -0.08 -0.03 0.00 -0.05 0.00 -0.03 -0.03 -0.06 0.00 0.05 -0.03 -0.03
Gain (loss) from divestitures, asset impairments and unusual items, net -0.02 0.73 0.00 -0.41 0.81 -0.18 -1.71 0.00 -0.88 -0.03 -0.18 0.00 1.15 -0.73 1.04 0.09 0.71 -0.24 -0.11 0.09
Income from operations 15.35% 17.28% 17.67% 15.81% 16.08% 17.61% 14.80% 15.37% 17.03% 18.50% 17.64% 16.80% 19.96% 18.29% 19.12% 17.32% 19.28% 18.86% 18.30% 16.22%
Interest expense, net -1.77 -1.86 -2.19 -2.36 -2.39 -2.51 -3.34 -3.00 -2.86 -2.65 -2.53 -2.60 -2.52 -2.43 -2.49 -2.59 -2.49 -2.42 -2.45 -2.67
Loss on early extinguishment of debt 0.00 0.00 -4.92 0.00 -0.02 -1.35 0.00 0.00 0.00 -0.03 -2.13 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Equity in net losses of unconsolidated entities -0.04 -0.30 -0.25 -0.22 -0.30 -0.41 -0.39 -0.70 -0.42 -0.35 -0.41 -0.24 -0.31 -0.24 -0.35 -0.20 -0.41 -0.22 -0.35 -0.93
Other, net 0.19 0.02 -0.13 0.02 0.07 0.03 0.03 0.00 0.05 0.03 0.03 -1.46 0.03 0.00 0.00 0.03 -0.38 0.00 0.00 0.00
Other income (expense) -1.62% -2.14% -7.48% -2.55% -2.63% -4.25% -3.71% -3.70% -3.22% -3.00% -5.04% -4.30% -2.81% -2.67% -2.83% -2.76% -3.29% -2.64% -2.80% -3.60%
Income before income taxes 13.72% 15.13% 10.19% 13.25% 13.45% 13.36% 11.09% 11.67% 13.81% 15.50% 12.60% 12.50% 17.15% 15.62% 16.29% 14.55% 15.99% 16.23% 15.50% 12.62%
Income tax expense -2.91 -3.58 -2.35 -3.02 -2.68 -3.26 -2.47 -1.98 -2.18 -3.02 -2.91 -3.11 -3.33 -2.59 -2.94 -3.30 8.73 -5.79 -5.68 -3.98
Consolidated net income 10.82% 11.55% 7.84% 10.24% 10.77% 10.10% 8.62% 9.68% 11.62% 12.48% 9.68% 9.39% 13.82% 13.03% 13.35% 11.25% 24.73% 10.44% 9.82% 8.63%
Net (income) loss attributable to noncontrolling interests 0.00 -0.02 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.03 0.00 0.00 0.03 0.00 0.03 0.00 -0.05 0.03 0.03
Net income attributable to Waste Management, Inc. 10.82% 11.53% 7.84% 10.24% 10.77% 10.10% 8.62% 9.68% 11.62% 12.48% 9.66% 9.39% 13.82% 13.06% 13.35% 11.28% 24.73% 10.39% 9.84% 8.66%

Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

The financial performance of the entity from March 2017 through December 2021 is characterized by relative stability in gross margins and operating efficiency, despite periodic volatility in non-operating expenses and tax adjustments.

Gross Profitability and Operating Costs
Operating costs consistently remained between 60% and 63% of total operating revenues. A period of improved efficiency was observed between late 2019 and mid-2020, where operating costs reached a low of 60.17% in December 2019. Consequently, gross profit margins fluctuated within a narrow band, typically between 37% and 39%, peaking at 39.83% in December 2019 before contracting to 36.83% by December 2021.
Operating Expense Trends
Selling, general and administrative (SG&A) expenses exhibited volatility, generally ranging from 9% to 11%, with a notable spike to 12.54% in December 2020. Depreciation and amortization showed a steady upward trend as a percentage of revenue, increasing from approximately 9.5% in early 2017 to 10.90% by the end of 2021, suggesting an increase in the capital intensity of operations relative to revenue growth.
Operating Income Performance
Income from operations remained resilient, typically fluctuating between 15% and 20% of operating revenues. The highest operating margin was recorded in December 2018 at 19.96%, while the lowest occurred in June 2020 at 14.80%. The stability of this metric indicates a consistent ability to convert revenue into operating profit despite fluctuating overhead costs.
Interest and Non-Operating Items
A positive trend is observed in interest expenses, which decreased from 2.67% of revenue in March 2017 to 1.77% by December 2021, indicating a reduction in the relative burden of debt servicing. This was occasionally offset by episodic losses from the early extinguishment of debt, most notably in June 2021, which impacted the bottom line by 4.92% of revenues.
Net Profitability and Tax Impact
Consolidated net income generally stayed between 8% and 13% of operating revenues. A significant anomaly occurred in December 2017, where net income surged to 24.73% due to a positive income tax adjustment of 8.73%. Excluding this outlier, net profitability remained stable, though it experienced a temporary dip to 7.84% in June 2021, primarily driven by the aforementioned debt extinguishment costs.

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