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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 Balance Sheet: Liabilities and Stockholders’ Equity

Waste Management Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Accounts payable 4.73 3.82 3.84 4.58 4.76
Accrued liabilities 4.91 4.57 4.78 4.93 4.49
Deferred revenues 1.96 1.84 1.92 2.30 2.30
Current portion of long-term debt 2.43 1.88 0.79 1.91 3.39
Current liabilities 14.03% 12.11% 11.33% 13.72% 14.94%
Long-term debt, less current portion 43.64 45.18 47.87 42.36 40.09
Deferred income taxes 5.82 6.15 5.07 5.70 5.72
Landfill and environmental remediation liabilities 8.16 7.57 6.96 8.07 8.11
Other liabilities 3.87 3.58 3.29 2.44 3.46
Long-term liabilities 61.48% 62.49% 63.18% 58.57% 57.38%
Total liabilities 75.51% 74.60% 74.52% 72.29% 72.32%
Common stock, $0.01 par value 0.02 0.02 0.02 0.03 0.03
Additional paid-in capital 17.76 17.48 18.20 22.04 22.60
Retained earnings 41.26 38.03 38.18 43.25 39.34
Accumulated other comprehensive income (loss) 0.06 0.13 -0.03 -0.38 0.04
Treasury stock at cost -34.62 -30.26 -30.89 -37.24 -34.43
Total Waste Management, Inc. stockholders’ equity 24.48% 25.39% 25.48% 27.70% 27.57%
Noncontrolling interests 0.01 0.01 0.01 0.00 0.11
Total equity 24.49% 25.40% 25.48% 27.71% 27.68%
Total liabilities and equity 100.00% 100.00% 100.00% 100.00% 100.00%

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).

An analysis of the capital structure reveals a gradual shift toward increased leverage over the five-year period. Total liabilities as a percentage of total liabilities and equity increased from 72.32% in 2017 to 75.51% in 2021, indicating a higher reliance on external financing and obligations to fund operations and assets.

Liability Composition and Long-Term Debt
Long-term liabilities consistently represent the largest portion of the balance sheet, rising from 57.38% in 2017 to a peak of 63.18% in 2019 before moderating to 61.48% by 2021. Long-term debt, specifically, showed a similar trajectory, peaking at 47.87% of total liabilities and equity in 2019. Landfill and environmental remediation liabilities remained relatively stable, fluctuating within a narrow band between 6.96% and 8.16%, reflecting the consistent nature of long-term regulatory obligations inherent to the industry.
Equity Trends and Shareholder Value Management
Total equity exhibited a steady decline from 27.68% in 2017 to 24.49% in 2021. This contraction is primarily driven by a substantial and persistent treasury stock position, which averaged between -30% and -37% of total liabilities and equity throughout the period. The magnitude of treasury stock suggests an aggressive share repurchase strategy. While retained earnings showed volatility—peaking at 43.25% in 2018 and ending at 41.26% in 2021—this growth was insufficient to offset the reduction in total equity caused by buybacks and a decline in additional paid-in capital from 22.60% to 17.76%.
Short-Term Obligations and Liquidity
Current liabilities remained relatively stable as a percentage of the total structure, beginning at 14.94% in 2017 and ending at 14.03% in 2021. Accounts payable and accrued liabilities fluctuated slightly but generally maintained their proportional weight. The current portion of long-term debt showed significant volatility, dropping to a low of 0.79% in 2019 before increasing to 2.43% by 2021, suggesting periodic fluctuations in debt maturity schedules.

The overall financial trajectory is characterized by a strategic reduction in the equity base through share repurchases, balanced by a modest increase in total liabilities. The predominance of long-term debt relative to current liabilities indicates a financing strategy focused on long-term capital stability rather than short-term credit reliance.

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