Waste Management Inc. (NYSE:WM)

Current Assets

The current assets showed a slight increase from 2,624 million US dollars at the end of 2017 to 2,645 million in 2018, indicating relative stability during this period. However, a significant surge occurred in 2019, where current assets more than doubled to 6,209 million. This sharp rise suggests a substantial accumulation of short-term assets, possibly due to increased liquidity or inventory buildup. Following this peak, current assets declined to 3,540 million in 2020 and further to 3,069 million in 2021, indicating a contraction of nearly 50% from the 2019 high. The decrease could reflect asset liquidation, reduced inventory, or other strategic adjustments to the asset base.

Adjusted Current Assets

Adjusted current assets followed a similar trajectory, with a slight increase from 2,645 million in 2017 to 2,674 million in 2018. Thereafter, they experienced a dramatic increase in 2019 to 6,237 million, aligning closely with the pattern seen in current assets. This confirms that adjustments made to current asset valuations or components did not significantly alter the overall trend. Adjustment figures then declined to 3,573 million in 2020 and to 3,094 million in 2021, mirroring the reduction noted in unadjusted current assets. The parallel movement between adjusted and unadjusted figures indicates consistent recognition of these assets across the periods.

The analysis of the financial data reveals discernible trends in the company's asset base over the five-year period from 2017 to 2021. Both total assets and adjusted total assets exhibit a generally upward trajectory throughout the timeframe, though the rate of growth varies across the years.

Total Assets

There is a steady increase in total assets from US$21,829 million in 2017 to US$29,345 million in 2020, representing a cumulative growth of approximately 34%. However, in 2021, total assets slightly declined to US$29,097 million, indicating a marginal pullback after the previous years’ growth. This slight reduction may suggest a period of stabilization or asset optimization.

Adjusted Total Assets

The adjusted total assets closely mirror the trend of total assets, increasing from US$22,335 million in 2017 to peak at US$29,378 million in 2020. Similar to total assets, a minor contraction occurs in 2021 with adjusted total assets decreasing slightly to US$29,122 million. The consistency between the total and adjusted asset figures suggests that adjustments made did not significantly alter the overall asset valuation trends.

Overall, the data indicates a solid expansion of the asset base over the first four years, which may reflect ongoing investments, acquisitions, or capital expenditures. The minor decline in 2021 could warrant closer examination to understand its drivers, but it does not signify a substantial reversal of previous growth trends.

Current Liabilities

Current liabilities exhibited a fluctuating but overall increasing trend over the five-year period. Starting at $3,262 million at the end of 2017, there was a slight decrease in 2018 to $3,108 million, followed by a marginal rise in 2019 to $3,144 million. The trend shifted upwards more prominently in 2020, reaching $3,553 million, and continued to increase significantly to $4,082 million by the end of 2021. This upward trajectory from 2019 onwards indicates increased short-term obligations.

Adjusted Current Liabilities

Adjusted current liabilities, which represent a refined measure of short-term obligations, followed a similar pattern but consistently remained lower than the unadjusted current liabilities, suggesting adjustments that exclude certain liabilities. Values decreased from $2,759 million in 2017 to $2,586 million in 2018, then slightly increased to $2,610 million in 2019. From 2020, the adjusted liabilities showed a notable rising trend, reaching $3,014 million and further increasing to $3,511 million by the end of 2021. This growth aligns with the trend in current liabilities, indicating an expanding short-term liability position even after adjustments.

The financial data reveals an upward trend in both total liabilities and adjusted total liabilities over the five-year period from 2017 to 2021.

Total liabilities

The total liabilities increased consistently each year, starting from 15,787 million USD in 2017 and reaching 21,971 million USD by the end of 2021. This represents an overall increase of approximately 39% over the five years. The most significant year-on-year increase occurred between 2018 and 2019, where total liabilities rose from 16,374 million USD to 20,673 million USD, indicating a substantial increase in the company's obligations.

Adjusted total liabilities

The adjusted total liabilities followed a similar but slightly lower growth pattern compared to total liabilities. Starting at 14,521 million USD in 2017, adjusted total liabilities grew to 19,706 million USD by 2021, representing an approximate 36% increase over the period. This measure also reflects the largest incremental increase between 2018 and 2019, increasing from 15,053 million USD to 18,732 million USD.

Overall, the parallel increase in both total and adjusted liabilities suggests expanding financial obligations, with no indication of any reduction or stabilization in liabilities throughout the observed timeframe. The adjusted total liabilities remain consistently lower than the total liabilities, implying certain adjustments made to the reported liabilities, but the growth rate remains similar in both measures.

Total stockholders’ equity

The total stockholders’ equity of the company exhibited an overall upward trend from 2017 through 2020, increasing from $6,019 million to $7,452 million. However, in 2021, there was a noticeable decline to $7,124 million. This indicates a period of growth in equity which reversed slightly in the most recent year.

Adjusted total equity

Adjusted total equity followed a similar pattern to total stockholders’ equity but at higher levels, suggesting adjustments that increase equity valuation. It increased consistently from $7,814 million in 2017 to a peak of $9,832 million in 2020. However, a decline was also observed in 2021, bringing the value down to $9,416 million. Despite this decline, adjusted total equity remained substantially higher than the unadjusted equity, reflecting potentially significant revaluations or accounting adjustments.

Comparative insights

Both measures show growth over the four years from 2017 to 2020, aligning with possible expansion or improved financial performance during that period. The decline in 2021 suggests either adverse market conditions, operational challenges, or other factors negatively impacting equity. The spread between total stockholders’ equity and adjusted total equity highlights differences between reported and adjusted measures, which may involve intangible assets, reserves, or other adjustments not reflected in the base equity figure.

Total Reported Debt

The total reported debt shows a generally increasing trend from 2017 to 2020, rising from $9,491 million in 2017 to a peak of $13,810 million in 2020. However, in 2021, there is a slight decrease to $13,405 million, indicating a modest reduction in debt levels after four consecutive years of growth.

Total Stockholders’ Equity

The total stockholders’ equity demonstrates a steady growth from $6,019 million in 2017 to $7,452 million in 2020. This is followed by a minor decline in 2021 to $7,124 million, suggesting a slight decrease in equity value after consistent increases.

Total Reported Capital

Total reported capital increases each year from $15,510 million in 2017 to $21,262 million in 2020, reflecting the combined growth in debt and equity. There is a slight reduction in 2021 to $20,529 million, consistent with the declines observed in both debt and equity in that year.

Adjusted Total Debt

Adjusted total debt mirrors the trend of reported debt, increasing from $9,976 million in 2017 to $14,326 million in 2020, then decreasing modestly to $13,928 million in 2021. This parallel trend confirms the general change in the company's debt levels when adjusted.

Adjusted Total Equity

Adjusted total equity shows consistent increases from $7,814 million in 2017 to $9,832 million in 2020, before declining slightly to $9,416 million in 2021. This pattern aligns with the reported equity trend, indicating a slight contraction in equity at adjusted levels in 2021.

Adjusted Total Capital

Adjusted total capital grows steadily from $17,790 million in 2017 to $24,158 million in 2020, reflecting the rising combined capital base. In 2021, it decreases to $23,344 million, paralleling decreases in both adjusted debt and equity, suggesting a modest downsizing of capital structure.

Summary of Trends

Over the five-year period, both reported and adjusted financial measures reveal steady growth in debt, equity, and total capital until 2020, followed by a slight decline in 2021. The increases from 2017 to 2020 suggest expansion in the company's financing and capital base, while the small reductions in 2021 may indicate efforts to optimize or reduce leverage and capital size. The close correlation between reported and adjusted figures across all categories suggests consistency in financial reporting adjustments over the period.

Operating revenues

The operating revenues showed a general upward trend over the five-year period. Starting at 14,485 million US dollars in 2017, revenues increased moderately each year until 2019, reaching 15,455 million US dollars. In 2020, there was a slight decline to 15,218 million US dollars. However, in 2021, the operating revenues recovered and grew significantly to 17,931 million US dollars, marking the highest value in the observed period.

Adjusted operating revenues

The adjusted operating revenues closely mirror the pattern observed in the operating revenues. Beginning at 14,495 million US dollars in 2017, they increased steadily to 15,467 million in 2019. Similar to operating revenues, there is a minor decrease in 2020, declining to 15,223 million US dollars. In 2021, adjusted operating revenues rose sharply to 17,963 million US dollars, reflecting a strong recovery and growth consistent with the operating revenues trend.

Net income attributable to Waste Management, Inc.

The net income demonstrated a general declining trend between 2017 and 2020, falling from 1,949 million USD in 2017 to 1,496 million USD in 2020. However, in 2021, there was a notable recovery with net income increasing to 1,816 million USD, nearly returning to the levels observed in 2018, though still below the 2017 peak.

Adjusted consolidated net income

Adjusted consolidated net income exhibited relative stability across the periods. After starting at 1,793 million USD in 2017, it increased slightly in 2018 to 1,885 million USD and peaked at 1,861 million USD in 2019. A small decline followed in 2020, bringing the figure to 1,718 million USD, with a marginal rise in 2021 to 1,742 million USD. Overall, the adjusted income showed less volatility compared to the net income attributable, reflecting more consistent underlying performance when adjustments are considered.

Comparative insights

The difference between net income attributable and adjusted consolidated net income suggests that adjustments captured some fluctuations impacting net income, potentially due to one-time items or extraordinary events. While net income showed a sharper dip followed by a recovery, adjusted consolidated income maintained a more stable trajectory, indicating the company's core earnings remained relatively resilient during the period under review.