Waste Management Inc. (NYSE:WM)

The financial data over the five-year period reveals a pattern of steady growth in operating revenues, rising from US$14,485 million in 2017 to US$17,931 million in 2021. Despite a slight decline in 2020, revenues showed strong recovery and significant increase by 2021.

Operating costs also increased in absolute terms, growing from US$9,021 million in 2017 to US$11,111 million in 2021. This rise in costs is reflected in the gross profit, which steadily increased from US$5,464 million in 2017 to US$6,820 million in 2021, indicating an overall improvement in profitability at the gross margin level.

Selling, general, and administrative expenses showed a consistent upward trend, rising from US$1,468 million in 2017 to US$1,864 million in 2021. Similarly, depreciation and amortization expenses increased notably from US$1,376 million to US$1,999 million over the same period, suggesting ongoing capital investment and asset base growth.

Restructuring costs remained relatively low and stable, fluctuating slightly with minor increases and decreases but generally under US$10 million annually.

Gain (loss) from divestitures, asset impairments, and unusual items was inconsistent, with a net gain in 2017, a peak gain in 2018, followed by net losses in 2019 and 2020, and a return to a gain in 2021. This variability suggests occasional non-operational influences on financial performance.

Income from operations followed a somewhat volatile but overall positive trend, increasing from US$2,636 million in 2017 to US$2,965 million in 2021, with a decline observed in 2020 possibly due to external or operational challenges.

Interest expense exhibited fluctuations, peaking in 2019 at US$464 million and then declining to US$375 million by 2021. Interest income showed variability, with a notable peak in 2019. Net interest expense followed a similar pattern to interest expense.

Loss on early extinguishment of debt was irregular and notably increased in 2021 to US$220 million, a significant rise compared to prior years, which may have influenced net income negatively.

Equity losses from unconsolidated entities remained relatively modest but variable, with a peak loss of US$68 million in 2020 and a reduced loss in 2021.

Other income (expense) remained negative overall, averaging around US$-500 million annually, reflecting consistent non-operating expenses or losses in this category.

Income before income taxes demonstrated a general upward trend with fluctuations, declining in 2019 and 2020 but increasing again in 2021 to US$2,349 million.

Income tax expense increased over time, from US$242 million in 2017 to US$532 million in 2021, paralleling the rise in pre-tax income.

Consolidated net income exhibited a declining trend from US$1,949 million in 2017 to US$1,496 million in 2020, followed by a recovery to US$1,817 million in 2021. This pattern aligns with operational income trends and the impact of exceptional items such as the loss on debt extinguishment.

Net income attributable to Waste Management, Inc. mirrored consolidated net income closely, displaying the same decline and recovery trends, ending at US$1,816 million in 2021.

Summary of financial trends:

Steady growth in operating revenues and gross profit indicates expanding operations and improving core business profitability.

Rising operating, administrative, and depreciation expenses suggest continued investment and scaling, though these cost increases may pressure operating margins.

Irregularities in gains and losses from divestitures and unusual items indicate episodic impacts on profitability outside core operations.

Operational income faced challenges in 2020 but recovered in 2021, reflecting resilience despite external pressures.

The increasing loss on early extinguishment of debt in 2021 highlights potential financial restructuring costs affecting net results.

Income tax expenses rose consistently, aligning with growing income before taxes.

Net income trends show a dip in 2020 with subsequent recovery, emphasizing sensitivity to both operational performance and non-operating expenses.