Name: Waste Management Inc. (NYSE:WM) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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Waste Management Inc., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Operating revenues	17,931)	15,218)	15,455)	14,914)	14,485)
Operating costs	(11,111)	(9,341)	(9,496)	(9,249)	(9,021)
Gross profit	6,820)	5,877)	5,959)	5,665)	5,464)
Selling, general and administrative	(1,864)	(1,728)	(1,631)	(1,453)	(1,468)
Depreciation and amortization	(1,999)	(1,671)	(1,574)	(1,477)	(1,376)
Restructuring	(8)	(9)	(6)	(4)	—)
Gain (loss) from divestitures, asset impairments and unusual items, net	16)	(35)	(42)	58)	16)
Income from operations	2,965)	2,434)	2,706)	2,789)	2,636)
Interest expense	(375)	(457)	(464)	(384)	(368)
Interest income	10)	32)	53)	10)	5)
Interest expense, net	(365)	(425)	(411)	(374)	(363)
Loss on early extinguishment of debt, net	(220)	(53)	(85)	—)	(6)
Equity in net losses of unconsolidated entities	(36)	(68)	(55)	(41)	(68)
Other, net	5)	5)	(50)	2)	(8)
Other income (expense)	(616)	(541)	(601)	(413)	(445)
Income before income taxes	2,349)	1,893)	2,105)	2,376)	2,191)
Income tax expense	(532)	(397)	(434)	(453)	(242)
Consolidated net income	1,817)	1,496)	1,671)	1,923)	1,949)
Net (income) loss attributable to noncontrolling interests	(1)	—)	(1)	2)	—)
Net income attributable to Waste Management, Inc.	1,816)	1,496)	1,670)	1,925)	1,949)

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).

Operating revenues exhibited a general upward trajectory over the five-year period, growing from US$ 14,485 million in 2017 to US$ 17,931 million in 2021. While a slight contraction occurred in 2020, the subsequent increase in 2021 represents the most significant single-year growth in the observed timeframe. Gross profit followed a similar pattern, peaking in 2021 at US$ 6,820 million, indicating that the company maintained the ability to scale its core revenue streams despite rising costs.

Operational Efficiency and Cost Trends: Operating costs increased steadily from US$ 9,021 million in 2017 to US$ 11,111 million in 2021. Selling, general, and administrative expenses also rose incrementally, moving from US$ 1,468 million to US$ 1,864 million over the period. Depreciation and amortization showed a consistent year-over-year increase, reflecting continued investment in long-term physical assets, rising from US$ 1,376 million to US$ 1,999 million.
Operating Income Volatility: Income from operations demonstrated fluctuation, reaching a low of US$ 2,434 million in 2020 before recovering to a five-year high of US$ 2,965 million in 2021. This indicates a period of margin compression between 2018 and 2020, followed by a strong operational recovery in the final year of the analysis.
Non-Operating Expenses and Debt Impact: Net interest expenses remained relatively stable, though a notable increase in the loss on early extinguishment of debt was observed. This item peaked at US$ 220 million in 2021, having previously spiked in 2019 and 2020. These debt-related charges created a disconnect between operating performance and net profitability.
Net Income Analysis: Consolidated net income experienced a downward trend from 2017 to 2020, falling from US$ 1,949 million to US$ 1,496 million. Although net income recovered to US$ 1,817 million in 2021, the final figure remains below the 2017 level despite significantly higher operating revenues. This divergence is primarily attributable to the increase in operating costs, higher depreciation, and substantial losses from the early extinguishment of debt.

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