Current Ratio
since 2005
Calculation
Waste Management Inc., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Dec 31, 2021 | 0.75 | = | 3,069) | ÷ | 4,082) |
| Dec 31, 2020 | 1.00 | = | 3,540) | ÷ | 3,553) |
| Dec 31, 2019 | 1.97 | = | 6,209) | ÷ | 3,144) |
| Dec 31, 2018 | 0.85 | = | 2,645) | ÷ | 3,108) |
| Dec 31, 2017 | 0.80 | = | 2,624) | ÷ | 3,262) |
| Dec 31, 2016 | 0.85 | = | 2,376) | ÷ | 2,794) |
| Dec 31, 2015 | 0.93 | = | 2,345) | ÷ | 2,510) |
| Dec 31, 2014 | 1.04 | = | 3,641) | ÷ | 3,485) |
| Dec 31, 2013 | 0.83 | = | 2,499) | ÷ | 3,014) |
| Dec 31, 2012 | 0.80 | = | 2,423) | ÷ | 3,036) |
| Dec 31, 2011 | 0.78 | = | 2,379) | ÷ | 3,068) |
| Dec 31, 2010 | 1.00 | = | 2,482) | ÷ | 2,485) |
| Dec 31, 2009 | 1.04 | = | 3,010) | ÷ | 2,901) |
| Dec 31, 2008 | 0.77 | = | 2,335) | ÷ | 3,036) |
| Dec 31, 2007 | 0.95 | = | 2,480) | ÷ | 2,598) |
| Dec 31, 2006 | 0.97 | = | 3,182) | ÷ | 3,268) |
| Dec 31, 2005 | 1.06 | = | 3,451) | ÷ | 3,257) |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The liquidity profile from 2005 to 2021 is characterized by a recurring tendency to operate with short-term assets that closely align with or fall below short-term obligations, with a significant outlier occurring in 2019.
- Current Asset Trends
- Current assets exhibited relative stability between 2005 and 2018, generally fluctuating between 2.3 billion and 3.6 billion dollars. A substantial spike is observed in 2019, where assets reached a peak of 6.2 billion dollars. Following this peak, assets decreased significantly, returning to 3.1 billion dollars by 2021.
- Current Liability Trends
- Current liabilities remained largely consistent between 2.5 billion and 3.3 billion dollars for the majority of the period. However, a steady upward trend emerged starting in 2019, with liabilities increasing from 3.1 billion dollars to a period high of 4.1 billion dollars by December 31, 2021.
- Current Ratio Interpretation
- The current ratio remained below 1.00 for approximately 11 of the 17 years analyzed, indicating a frequent reliance on efficient working capital management or consistent cash inflows to meet short-term obligations. The ratio reached a notable high of 1.97 in 2019, directly correlating with the surge in current assets. Conversely, the period ended with a decline to 0.75 in 2021, the lowest point in the observed timeframe, driven by the simultaneous decrease in assets and increase in liabilities.
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Comparison to Industry (Industrials)
Waste Management Inc., current ratio, long-term trends, comparison to industry (industrials)
| Waste Management Inc. | Industrials | |
|---|---|---|
| Dec 31, 2021 | 0.75 | 1.29 |
| Dec 31, 2020 | 1.00 | 1.41 |
| Dec 31, 2019 | 1.97 | 1.16 |
| Dec 31, 2018 | 0.85 | 1.13 |
| Dec 31, 2017 | 0.80 | 1.24 |
| Dec 31, 2016 | 0.85 | 1.22 |
| Dec 31, 2015 | 0.93 | 1.24 |
| Dec 31, 2014 | 1.04 | 1.26 |
| Dec 31, 2013 | 0.83 | 1.33 |
| Dec 31, 2012 | 0.80 | 1.30 |
| Dec 31, 2011 | 0.78 | 1.30 |
| Dec 31, 2010 | 1.00 | 1.28 |
| Dec 31, 2009 | 1.04 | 1.23 |
| Dec 31, 2008 | 0.77 | 1.06 |
| Dec 31, 2007 | 0.95 | 1.07 |
| Dec 31, 2006 | 0.97 | 1.05 |
| Dec 31, 2005 | 1.06 | 1.05 |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).