Waste Management Inc. (NYSE:WM)

The financial performance over the examined period reveals several noteworthy trends and fluctuations. Operating revenues exhibit an overall growing pattern with some interruptions. From 2005 to 2008, revenues remain relatively stable around $13 billion to $13.6 billion, followed by a noticeable dip in 2009 to approximately $11.8 billion. Subsequently, a recovery and gradual increase are observed from 2010 onwards, culminating in a peak near $17.9 billion in 2021. This suggests a resilient revenue-generating capability despite economic fluctuations.

Net income attributable to the company demonstrates more pronounced volatility. During the initial years, net income remains fairly stable between $950 million and $1.2 billion. However, it experiences a sharp decline in 2013, plummeting to $98 million, representing a significant outlier in the data. After this decline, net income rebounded strongly, reaching a peak of $1.9 billion in 2017 before tapering off slightly in later years but remaining above $1.4 billion. This pattern may indicate extraordinary events or operational challenges in 2013 followed by effective corrective measures or favorable conditions.

The net profit margin also highlights the underlying profitability dynamics. Starting at around 9% in 2005, the margin gradually contracts to a low of 0.7% in 2013, closely mirroring the drastic drop in net income that year. Subsequently, profitability improves significantly, peaking over 13% in 2017. Following this peak, the margin decreases somewhat but stabilizes around 10% in the most recent years. This progression aligns with the net income and revenue trends, reflecting periods of reduced profitability and recovery as well as efficient management of costs relative to revenues.

Operating Revenues

Generally stable initially, with a dip in 2009 followed by consistent growth, peaking in 2021.

Net Income

Stable early years, sharp decline in 2013, strong recovery thereafter with subsequent moderate fluctuations.

Net Profit Margin

Decline from initial levels to a low in 2013, followed by a substantial increase and later stabilization around 10%.

In summary, the company experienced a period of financial stress around 2013, evidenced by a sharp decline in profitability and net income despite relatively stable revenues. The recovery phase post-2013 indicates successful strategic or operational adjustments enabling improved profitability and revenue growth. The overall upward trajectory in both revenue and profit margin from 2014 to 2021 reflects strengthening financial health and operational efficiency.