Return on Assets (ROA)
since 2005
Calculation
Waste Management Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income attributable to Waste Management, Inc.1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 6.24% | = | 100 | × | 1,816) | ÷ | 29,097) |
| Dec 31, 2020 | 5.10% | = | 100 | × | 1,496) | ÷ | 29,345) |
| Dec 31, 2019 | 6.02% | = | 100 | × | 1,670) | ÷ | 27,743) |
| Dec 31, 2018 | 8.50% | = | 100 | × | 1,925) | ÷ | 22,650) |
| Dec 31, 2017 | 8.93% | = | 100 | × | 1,949) | ÷ | 21,829) |
| Dec 31, 2016 | 5.67% | = | 100 | × | 1,182) | ÷ | 20,859) |
| Dec 31, 2015 | 3.69% | = | 100 | × | 753) | ÷ | 20,419) |
| Dec 31, 2014 | 6.06% | = | 100 | × | 1,298) | ÷ | 21,412) |
| Dec 31, 2013 | 0.43% | = | 100 | × | 98) | ÷ | 22,603) |
| Dec 31, 2012 | 3.54% | = | 100 | × | 817) | ÷ | 23,097) |
| Dec 31, 2011 | 4.26% | = | 100 | × | 961) | ÷ | 22,569) |
| Dec 31, 2010 | 4.44% | = | 100 | × | 953) | ÷ | 21,476) |
| Dec 31, 2009 | 4.70% | = | 100 | × | 994) | ÷ | 21,154) |
| Dec 31, 2008 | 5.37% | = | 100 | × | 1,087) | ÷ | 20,227) |
| Dec 31, 2007 | 5.76% | = | 100 | × | 1,163) | ÷ | 20,175) |
| Dec 31, 2006 | 5.58% | = | 100 | × | 1,149) | ÷ | 20,600) |
| Dec 31, 2005 | 5.59% | = | 100 | × | 1,182) | ÷ | 21,135) |
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
Analysis of the Return on Assets (ROA) from 2005 to 2021 indicates three distinct operational phases characterized by initial stability, a period of extreme volatility, and a final phase of asset expansion.
- Initial Stability and Gradual Decline (2005–2012)
- During this interval, ROA remained relatively consistent, starting at 5.59% in 2005 and maintaining a range above 4% until 2012. Total assets remained stable, fluctuating narrowly between 20 billion and 23 billion dollars. However, a gradual downward trend in ROA is observed from 2008 (5.37%) to 2012 (3.54%), coinciding with a steady decrease in net income from 1.087 billion dollars to 817 million dollars.
- Profitability Volatility and the 2013 Anomaly (2013–2016)
- A significant contraction in performance occurred in 2013, where net income dropped precipitously to 98 million dollars, resulting in a sharp decline in ROA to a period low of 0.43%. This was followed by a rapid recovery in 2014, with ROA rebounding to 6.06% as net income returned to 1.298 billion dollars. The period concluded with further fluctuation, as ROA dipped to 3.69% in 2015 before recovering to 5.67% in 2016.
- Peak Performance and Asset Expansion (2017–2021)
- The highest efficiency levels were recorded in 2017 and 2018, with ROA reaching 8.93% and 8.50% respectively, driven by peak net income figures approaching 1.9 billion dollars. Starting in 2019, a substantial increase in total assets is observed, rising from 22.65 billion dollars in 2018 to 29.345 billion dollars in 2020. This expansion of the asset base led to a moderation of the ROA, which settled at 6.24% by 2021 despite the maintenance of strong net income levels.
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Comparison to Industry (Industrials)
Waste Management Inc., ROA, long-term trends, comparison to industry (industrials)
| Waste Management Inc. | Industrials | |
|---|---|---|
| Dec 31, 2021 | 6.24% | 3.40% |
| Dec 31, 2020 | 5.10% | 0.04% |
| Dec 31, 2019 | 6.02% | 2.56% |
| Dec 31, 2018 | 8.50% | 3.16% |
| Dec 31, 2017 | 8.93% | 3.59% |
| Dec 31, 2016 | 5.67% | 4.55% |
| Dec 31, 2015 | 3.69% | 3.52% |
| Dec 31, 2014 | 6.06% | 4.31% |
| Dec 31, 2013 | 0.43% | 3.91% |
| Dec 31, 2012 | 3.54% | 3.38% |
| Dec 31, 2011 | 4.26% | 3.69% |
| Dec 31, 2010 | 4.44% | 3.03% |
| Dec 31, 2009 | 4.70% | 2.24% |
| Dec 31, 2008 | 5.37% | 3.10% |
| Dec 31, 2007 | 5.76% | 3.87% |
| Dec 31, 2006 | 5.58% | 6.41% |
| Dec 31, 2005 | 5.59% | 1.42% |
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).