Name: Waste Management Inc. (NYSE:WM) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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

US$ in millions

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Accounts payable	1,375)	1,121)	1,065)	1,037)	1,040)
Accrued liabilities	1,428)	1,342)	1,327)	1,117)	980)
Deferred revenues	571)	539)	534)	522)	503)
Current portion of long-term debt	708)	551)	218)	432)	739)
Current liabilities	4,082)	3,553)	3,144)	3,108)	3,262)
Long-term debt, less current portion	12,697)	13,259)	13,280)	9,594)	8,752)
Deferred income taxes	1,694)	1,806)	1,407)	1,291)	1,248)
Landfill and environmental remediation liabilities	2,373)	2,222)	1,930)	1,828)	1,770)
Other liabilities	1,125)	1,051)	912)	553)	755)
Long-term liabilities	17,889)	18,338)	17,529)	13,266)	12,525)
Total liabilities	21,971)	21,891)	20,673)	16,374)	15,787)
Common stock, $0.01 par value	6)	6)	6)	6)	6)
Additional paid-in capital	5,169)	5,129)	5,049)	4,993)	4,933)
Retained earnings	12,004)	11,159)	10,592)	9,797)	8,588)
Accumulated other comprehensive income (loss)	17)	39)	(8)	(87)	8)
Treasury stock at cost	(10,072)	(8,881)	(8,571)	(8,434)	(7,516)
Total Waste Management, Inc. stockholders’ equity	7,124)	7,452)	7,068)	6,275)	6,019)
Noncontrolling interests	2)	2)	2)	1)	23)
Total equity	7,126)	7,454)	7,070)	6,276)	6,042)
Total liabilities and equity	29,097)	29,345)	27,743)	22,650)	21,829)

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 financial position from 2017 to 2021 reveals a significant expansion of the balance sheet, characterized by a substantial increase in total liabilities and a fluctuating but generally upward trend in total equity. Total liabilities grew from 15,787 million US dollars in 2017 to 21,971 million US dollars by 2021, representing a total increase of approximately 38.5%. Total equity followed a different trajectory, rising from 6,042 million US dollars in 2017 to a peak of 7,454 million US dollars in 2020, before declining slightly to 7,126 million US dollars in 2021.

Liability Structure and Debt Trends: Long-term debt experienced a sharp increase between 2018 and 2019, rising from 9,594 million US dollars to 13,280 million US dollars, before stabilizing and slightly decreasing to 12,697 million US dollars by 2021. Current liabilities also trended upward over the five-year period, moving from 3,262 million US dollars to 4,082 million US dollars. This growth was supported by steady increases in accounts payable and accrued liabilities, which suggests an expansion in operational scale or changes in payment terms with suppliers.
Environmental and Regulatory Obligations: Landfill and environmental remediation liabilities demonstrated a consistent year-over-year increase, growing from 1,770 million US dollars in 2017 to 2,373 million US dollars in 2021. This linear progression reflects the ongoing nature of environmental obligations inherent to the industry. Additionally, deferred income taxes showed a general upward trend, peaking at 1,806 million US dollars in 2020.
Equity Composition and Shareholder Returns: Retained earnings showed strong and uninterrupted growth, increasing from 8,588 million US dollars in 2017 to 12,004 million US dollars in 2021, indicating consistent profitability and a commitment to reinvesting earnings. However, this growth was partially offset by a significant increase in treasury stock at cost, which moved from -7,516 million US dollars to -10,072 million US dollars. This trend indicates an aggressive share repurchase strategy over the analyzed period.
Solvency and Leverage Observations: The relationship between total liabilities and total equity shifted toward higher leverage. In 2017, the ratio of total liabilities to total equity was approximately 2.61. By 2021, this ratio increased to approximately 3.08. The acceleration of liabilities, particularly the surge in long-term debt in 2019, outpaced the growth of stockholders' equity, resulting in a more leveraged capital structure by the end of the period.

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