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 analysis of the annual financial data over the period from 2005 to 2021 reveals several notable trends and fluctuations in the company's liquidity position as reflected by current assets, current liabilities, and the current ratio.
- Current Assets
- Current assets exhibit a fluctuating pattern without a consistent upward or downward trend. There are periods of decline such as from 2005 (3451 million USD) to 2007 (2480 million USD), followed by recovery and stabilization around the mid-2000s values through 2014. A marked increase is observed in 2019, reaching a peak value of 6209 million USD, which almost doubles the asset position over the prior year. The subsequent years see a decline again, ending at 3069 million USD in 2021. This volatility may indicate varying levels of operational or investment activity influencing short-term resources.
- Current Liabilities
- Current liabilities also show fluctuations but tend to remain relatively stable around the 2500-3500 million USD range for most of the period. Notable increases occur toward the end of the timeline, with liabilities rising steadily from 3144 million USD in 2019 to 4082 million USD in 2021. This upward movement in liabilities, especially in recent years, suggests increased short-term obligations or possibly greater leverage or operational scaling.
- Current Ratio
- The current ratio reflects the relationship between current assets and current liabilities and serves as an indicator of short-term financial health. The ratio mostly oscillates below or near the benchmark of 1 throughout the period, evidencing tight liquidity conditions. The ratio dips to a low of 0.75 in 2021, indicative of potential liquidity pressure. One exception is the substantial spike to 1.97 in 2019, corresponding with the notable surge in current assets that year. Outside of this year, the current ratio tends toward or below 1, with values such as 0.77 in 2008, 0.78 in 2011, and 0.8 in 2012 and 2017, pointing towards recurring periods where current liabilities exceed current assets, which may raise concerns on the company's ability to cover short-term obligations without raising additional funds.
Overall, the data depicts a company experiencing variability in its short-term assets and liabilities, with liquidity ratios generally close to or below 1, except for a notable improvement in 2019. The recent trends of increased liabilities combined with decreased current assets in 2020 and 2021 suggest a potential strain on liquidity, warranting attention to working capital management strategies to ensure ongoing operational stability.
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).