Return on Equity (ROE)
since 2005
Calculation
Waste Management Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income attributable to Waste Management, Inc.1 | ÷ | Total Waste Management, Inc. stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 25.49% | = | 100 | × | 1,816) | ÷ | 7,124) |
| Dec 31, 2020 | 20.08% | = | 100 | × | 1,496) | ÷ | 7,452) |
| Dec 31, 2019 | 23.63% | = | 100 | × | 1,670) | ÷ | 7,068) |
| Dec 31, 2018 | 30.68% | = | 100 | × | 1,925) | ÷ | 6,275) |
| Dec 31, 2017 | 32.38% | = | 100 | × | 1,949) | ÷ | 6,019) |
| Dec 31, 2016 | 22.31% | = | 100 | × | 1,182) | ÷ | 5,297) |
| Dec 31, 2015 | 14.09% | = | 100 | × | 753) | ÷ | 5,345) |
| Dec 31, 2014 | 22.13% | = | 100 | × | 1,298) | ÷ | 5,866) |
| Dec 31, 2013 | 1.72% | = | 100 | × | 98) | ÷ | 5,707) |
| Dec 31, 2012 | 12.86% | = | 100 | × | 817) | ÷ | 6,354) |
| Dec 31, 2011 | 15.83% | = | 100 | × | 961) | ÷ | 6,070) |
| Dec 31, 2010 | 15.22% | = | 100 | × | 953) | ÷ | 6,260) |
| Dec 31, 2009 | 15.82% | = | 100 | × | 994) | ÷ | 6,285) |
| Dec 31, 2008 | 18.42% | = | 100 | × | 1,087) | ÷ | 5,902) |
| Dec 31, 2007 | 20.08% | = | 100 | × | 1,163) | ÷ | 5,792) |
| Dec 31, 2006 | 18.47% | = | 100 | × | 1,149) | ÷ | 6,222) |
| Dec 31, 2005 | 19.31% | = | 100 | × | 1,182) | ÷ | 6,121) |
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 financial performance from 2005 to 2021 reveals a period of significant volatility in profitability and return on equity, characterized by a severe contraction in 2013 followed by a substantial expansion in the latter half of the observed period.
- Return on Equity (ROE) Trajectory
- ROE exhibited relative stability between 2005 and 2012, generally fluctuating between 12.86% and 20.08%. This stability was disrupted in 2013, when ROE plummeted to a period low of 1.72%, directly correlating with a sharp decline in net income. A recovery phase ensued, leading to a significant peak of 32.38% in 2017, which represents the highest return of the entire period. From 2019 to 2021, the ratio stabilized at a higher baseline, ranging between 20.08% and 25.49%.
- Net Income Dynamics
- Net income remained largely consistent between 2005 and 2012, typically hovering around the 1 billion US dollar mark. Following the 2013 trough of 98 million US dollars, profitability entered a strong growth phase, ascending to 1.949 billion US dollars by 2017. Despite a slight moderation in the following two years, net income consistently remained above 1.4 billion US dollars from 2019 through 2021.
- Equity Base and Capital Stability
- Total stockholders' equity demonstrated remarkable stability over the 17-year span, fluctuating within a narrow range between approximately 5.3 billion and 7.5 billion US dollars. Because the equity base did not experience drastic structural shifts, the volatility observed in ROE is primarily attributable to fluctuations in net income rather than changes in the capital base.
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Comparison to Industry (Industrials)
Waste Management Inc., ROE, long-term trends, comparison to industry (industrials)
| Waste Management Inc. | Industrials | |
|---|---|---|
| Dec 31, 2021 | 25.49% | 15.38% |
| Dec 31, 2020 | 20.08% | 0.24% |
| Dec 31, 2019 | 23.63% | 14.56% |
| Dec 31, 2018 | 30.68% | 17.95% |
| Dec 31, 2017 | 32.38% | 18.24% |
| Dec 31, 2016 | 22.31% | 21.69% |
| Dec 31, 2015 | 14.09% | 16.11% |
| Dec 31, 2014 | 22.13% | 19.68% |
| Dec 31, 2013 | 1.72% | 16.40% |
| Dec 31, 2012 | 12.86% | 17.20% |
| Dec 31, 2011 | 15.83% | 20.10% |
| Dec 31, 2010 | 15.22% | 16.41% |
| Dec 31, 2009 | 15.82% | 12.84% |
| Dec 31, 2008 | 18.42% | 20.74% |
| Dec 31, 2007 | 20.08% | 20.36% |
| Dec 31, 2006 | 18.47% | 32.16% |
| Dec 31, 2005 | 19.31% | 7.80% |
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).