Net Profit Margin
since 2005
Calculation
Waste Management Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income attributable to Waste Management, Inc.1 | ÷ | Operating revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 10.13% | = | 100 | × | 1,816) | ÷ | 17,931) |
| Dec 31, 2020 | 9.83% | = | 100 | × | 1,496) | ÷ | 15,218) |
| Dec 31, 2019 | 10.81% | = | 100 | × | 1,670) | ÷ | 15,455) |
| Dec 31, 2018 | 12.91% | = | 100 | × | 1,925) | ÷ | 14,914) |
| Dec 31, 2017 | 13.46% | = | 100 | × | 1,949) | ÷ | 14,485) |
| Dec 31, 2016 | 8.69% | = | 100 | × | 1,182) | ÷ | 13,609) |
| Dec 31, 2015 | 5.81% | = | 100 | × | 753) | ÷ | 12,961) |
| Dec 31, 2014 | 9.27% | = | 100 | × | 1,298) | ÷ | 13,996) |
| Dec 31, 2013 | 0.70% | = | 100 | × | 98) | ÷ | 13,983) |
| Dec 31, 2012 | 5.99% | = | 100 | × | 817) | ÷ | 13,649) |
| Dec 31, 2011 | 7.18% | = | 100 | × | 961) | ÷ | 13,378) |
| Dec 31, 2010 | 7.61% | = | 100 | × | 953) | ÷ | 12,515) |
| Dec 31, 2009 | 8.43% | = | 100 | × | 994) | ÷ | 11,791) |
| Dec 31, 2008 | 8.12% | = | 100 | × | 1,087) | ÷ | 13,388) |
| Dec 31, 2007 | 8.74% | = | 100 | × | 1,163) | ÷ | 13,310) |
| Dec 31, 2006 | 8.60% | = | 100 | × | 1,149) | ÷ | 13,363) |
| Dec 31, 2005 | 9.04% | = | 100 | × | 1,182) | ÷ | 13,074) |
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
Operating revenues exhibited a general upward trajectory over the sixteen-year period, increasing from 13,074 million USD in 2005 to 17,931 million USD by 2021. However, the net profit margin demonstrated significant volatility, indicating fluctuations in the efficiency of converting revenue into actual profit.
- Initial Margin Compression (2005–2012)
- From 2005 to 2012, a gradual downward trend in profitability is observed. Net profit margins declined from a high of 9.04% in 2005 to 5.99% in 2012. During this interval, revenues remained relatively stagnant, while net income slowly eroded, suggesting a period of increasing costs or pricing pressures.
- Period of Extreme Volatility (2013–2015)
- The most significant anomaly occurred in 2013, where the net profit margin collapsed to 0.70% due to a sharp decline in net income to 98 million USD, despite an increase in operating revenues. This was followed by a rapid recovery to 9.27% in 2014, before another drop to 5.81% in 2015, highlighting a period of substantial financial instability or the impact of non-recurring items.
- Profitability Expansion and Stabilization (2016–2021)
- Starting in 2016, a strong recovery phase is evident, with net profit margins peaking at 13.46% in 2017. From 2018 through 2021, margins stabilized at a higher baseline compared to the previous decade, fluctuating between 9.83% and 12.91%. This suggests a fundamental improvement in operational efficiency and a more robust correlation between revenue growth and net income generation in the latter part of the analysis period.
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Comparison to Industry (Industrials)
Waste Management Inc., net profit margin, long-term trends, comparison to industry (industrials)
| Waste Management Inc. | Industrials | |
|---|---|---|
| Dec 31, 2021 | 10.13% | 5.85% |
| Dec 31, 2020 | 9.83% | 0.09% |
| Dec 31, 2019 | 10.81% | 4.11% |
| Dec 31, 2018 | 12.91% | 4.75% |
| Dec 31, 2017 | 13.46% | 5.79% |
| Dec 31, 2016 | 8.69% | 7.43% |
| Dec 31, 2015 | 5.81% | 6.48% |
| Dec 31, 2014 | 9.27% | 8.76% |
| Dec 31, 2013 | 0.70% | 8.23% |
| Dec 31, 2012 | 5.99% | 7.39% |
| Dec 31, 2011 | 7.18% | 8.26% |
| Dec 31, 2010 | 7.61% | 7.48% |
| Dec 31, 2009 | 8.43% | 5.76% |
| Dec 31, 2008 | 8.12% | 7.27% |
| Dec 31, 2007 | 8.74% | 9.56% |
| Dec 31, 2006 | 8.60% | 14.87% |
| Dec 31, 2005 | 9.04% | 3.55% |
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).