Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
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Waste Management Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity
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).
The financial data over the five-year period reveals several noteworthy trends in the composition of liabilities and equity.
- Current liabilities
- Current liabilities as a percentage of total liabilities and equity exhibited a gradual decline from 14.94% in 2017 to a low of 11.33% in 2019, followed by an increase to 14.03% in 2021. Within this category, accounts payable decreased from 4.76% to 3.84% by 2019 but rose again to 4.73% in 2021. Accrued liabilities showed minor fluctuations, generally remaining around 4.5% to 4.9%. The current portion of long-term debt declined significantly from 3.39% in 2017 to 0.79% in 2019 but increased to 2.43% by 2021.
- Long-term liabilities
- Long-term debt, less the current portion, increased steadily from 40.09% in 2017, peaking at 47.87% in 2019, then declined to 43.64% in 2021. Deferred income taxes remained relatively stable with slight fluctuations around 5.5% to 6.1%. Landfill and environmental remediation liabilities showed a declining trend from 8.11% in 2017 to 6.96% in 2019, before gradually rising back to 8.16% in 2021. Other liabilities varied modestly within the 2.4% to 3.9% range. The total long-term liabilities increased from 57.38% in 2017 to 63.18% in 2019, then decreased to 61.48% in 2021.
- Total liabilities
- Total liabilities accounted for approximately 72% to 75.5% of the capital structure over the period, showing a slight upward trend, with the highest proportion recorded in 2021.
- Equity components
- Common stock remained negligible, stable around 0.02% to 0.03%. Additional paid-in capital decreased from 22.60% in 2017 to around 17.48%-17.76% towards the end of the period, indicating possible changes in share issuances or buybacks. Retained earnings fluctuated moderately, showing a dip from 43.25% in 2018 down to approximately 38% in 2019 and 2020, followed by a recovery to 41.26% in 2021. Accumulated other comprehensive income (loss) varied mildly but remained near zero. Treasury stock at cost, a negative equity component, showed variability with a notable increase in the negative balance during 2018 (-37.24%) and 2021 (-34.62%). The total stockholders’ equity slightly decreased from about 27.57% in 2017 to 24.48% in 2021. Consequently, total equity declined marginally over the period.
- Overall capital structure
- The overall composition indicates a stable but slightly increasing reliance on liabilities, particularly long-term debt, while equity proportions have marginally contracted. The fluctuation in treasury stock suggests active management of shares outstanding, potentially involving repurchase programs. The increase in landfill and environmental remediation liabilities after 2019 could reflect growing acknowledgment of environmental obligations.