Stock Analysis on Net
Stock Analysis on Net

Waste Management Inc. (NYSE:WM)

$22.49

This company has been moved to the archive! The financial data has not been updated since February 15, 2022.

Return on Equity (ROE)
since 2005

Microsoft Excel

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Calculation

Waste Management Inc., ROE, long-term trends, calculation

Microsoft Excel
ROE = 100 × Net income attributable to Waste Management, Inc.1 ÷ Total Waste Management, Inc. stockholders’ equity1
Dec 31, 2021 = 100 × ÷
Dec 31, 2020 = 100 × ÷
Dec 31, 2019 = 100 × ÷
Dec 31, 2018 = 100 × ÷
Dec 31, 2017 = 100 × ÷
Dec 31, 2016 = 100 × ÷
Dec 31, 2015 = 100 × ÷
Dec 31, 2014 = 100 × ÷
Dec 31, 2013 = 100 × ÷
Dec 31, 2012 = 100 × ÷
Dec 31, 2011 = 100 × ÷
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Dec 31, 2007 = 100 × ÷
Dec 31, 2006 = 100 × ÷
Dec 31, 2005 = 100 × ÷

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

Net Income Trend
The net income exhibited moderate fluctuations over the period with a general pattern of stability followed by some volatility. From 2005 to 2012, net income ranged roughly between 817 and 1187 million USD, experiencing a notable decline in 2013 to 98 million USD. After this dip, net income sharply recovered in 2014, reaching as high as 1949 million USD in 2017. The values remained relatively strong afterward, with some fluctuations but generally staying above 1400 million USD through 2021.
Stockholders’ Equity Trend
Total stockholders’ equity demonstrated a less volatile but somewhat cyclical pattern, starting at 6121 million USD in 2005, experiencing slight decreases and increases but mainly fluctuating in the range of approximately 5300 to 6300 million USD until around 2014. From 2015 onward, there was a noticeable increase reaching a peak of 7452 million USD in 2020, before a modest decline to 7124 million USD in 2021. This indicates an overall growth in equity capital but with some periods of contraction.
Return on Equity (ROE) Analysis
ROE followed a pattern reflecting the fluctuations observed in net income and equity. Initially stable in the high teens to low twenties percent range through 2005-2012, there was a pronounced drop in 2013 to just 1.72%, corresponding with the sharp decline in net income that year. Subsequently, ROE rebounded strongly with peaks above 30% in 2017 and 2018, indicating improved profitability relative to equity. Although ROE decreased after these peaks, it remained elevated, ending at 25.49% in 2021, which is significantly higher than most years prior to 2013.
Overall Insights
The data suggests a company that experienced a challenging period around 2013, reflected in significantly reduced net income and ROE. However, recovery phases are strong, as evidenced by robust net income growth and improved equity returns in subsequent years. Stockholders’ equity grew steadily in recent years despite some variability, supporting enhanced profitability. The sharp recovery in net income and elevated ROE metrics after 2013 indicate improved operational efficiency or favorable market conditions during the latter half of the observed period.

Comparison to Industry (Industrials)

Waste Management Inc., ROE, long-term trends, comparison to industry (industrials)

Microsoft Excel
Waste Management Inc. Industrials
Dec 31, 2021
Dec 31, 2020
Dec 31, 2019
Dec 31, 2018
Dec 31, 2017
Dec 31, 2016
Dec 31, 2015
Dec 31, 2014
Dec 31, 2013
Dec 31, 2012
Dec 31, 2011
Dec 31, 2010
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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).