Operating Profit Margin
since 2005
Calculation
Waste Management Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Income from operations1 | ÷ | Operating revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 16.54% | = | 100 | × | 2,965) | ÷ | 17,931) |
| Dec 31, 2020 | 15.99% | = | 100 | × | 2,434) | ÷ | 15,218) |
| Dec 31, 2019 | 17.51% | = | 100 | × | 2,706) | ÷ | 15,455) |
| Dec 31, 2018 | 18.70% | = | 100 | × | 2,789) | ÷ | 14,914) |
| Dec 31, 2017 | 18.20% | = | 100 | × | 2,636) | ÷ | 14,485) |
| Dec 31, 2016 | 16.87% | = | 100 | × | 2,296) | ÷ | 13,609) |
| Dec 31, 2015 | 15.78% | = | 100 | × | 2,045) | ÷ | 12,961) |
| Dec 31, 2014 | 16.43% | = | 100 | × | 2,299) | ÷ | 13,996) |
| Dec 31, 2013 | 7.72% | = | 100 | × | 1,079) | ÷ | 13,983) |
| Dec 31, 2012 | 13.56% | = | 100 | × | 1,851) | ÷ | 13,649) |
| Dec 31, 2011 | 15.16% | = | 100 | × | 2,028) | ÷ | 13,378) |
| Dec 31, 2010 | 16.91% | = | 100 | × | 2,116) | ÷ | 12,515) |
| Dec 31, 2009 | 16.00% | = | 100 | × | 1,887) | ÷ | 11,791) |
| Dec 31, 2008 | 16.69% | = | 100 | × | 2,234) | ÷ | 13,388) |
| Dec 31, 2007 | 16.93% | = | 100 | × | 2,254) | ÷ | 13,310) |
| Dec 31, 2006 | 15.18% | = | 100 | × | 2,029) | ÷ | 13,363) |
| Dec 31, 2005 | 13.08% | = | 100 | × | 1,710) | ÷ | 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
The operating profit margin of Waste Management Inc. demonstrated a general long-term upward trajectory from 2005 to 2021, characterized by an initial period of growth, a significant anomaly in 2013, and a peak in 2018 before stabilizing in the most recent years.
- Initial Growth and Stability (2005–2012)
- The operating profit margin increased from 13.08% in 2005 to a peak of 16.93% in 2007. Following this, the margin remained relatively stable, fluctuating between 16.00% and 16.91% through 2010, before experiencing a gradual decline to 13.56% by the end of 2012.
- The 2013 Profitability Contraction
- A severe contraction in operational efficiency occurred in 2013, with the operating profit margin falling to 7.72%, the lowest level recorded in the period. This decline was driven by a sharp drop in income from operations to 1,079 million US dollars, despite operating revenues increasing to 13,983 million US dollars.
- Recovery and Peak Expansion (2014–2018)
- A rapid recovery followed the 2013 low, with the margin rebounding to 16.43% in 2014. Profitability continued to expand over the next several years, reaching a historical maximum of 18.70% in 2018. This period was marked by consistent growth in income from operations, which rose from 2,299 million US dollars in 2014 to 2,789 million US dollars in 2018.
- Recent Performance and Stabilization (2019–2021)
- Between 2019 and 2021, the operating profit margin entered a phase of stabilization, ranging between 15.99% and 17.51%. While the margin experienced a slight dip in 2020, 2021 saw the company reach its highest recorded operating revenues of 17,931 million US dollars and income from operations of 2,965 million US dollars, resulting in a stabilized operating profit margin of 16.54%.
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