Total Asset Turnover
since 2005
Calculation
Waste Management Inc., total asset turnover, long-term trends, calculation
| Total asset turnover | = | Operating revenues1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|
| Dec 31, 2021 | 0.62 | = | 17,931) | ÷ | 29,097) |
| Dec 31, 2020 | 0.52 | = | 15,218) | ÷ | 29,345) |
| Dec 31, 2019 | 0.56 | = | 15,455) | ÷ | 27,743) |
| Dec 31, 2018 | 0.66 | = | 14,914) | ÷ | 22,650) |
| Dec 31, 2017 | 0.66 | = | 14,485) | ÷ | 21,829) |
| Dec 31, 2016 | 0.65 | = | 13,609) | ÷ | 20,859) |
| Dec 31, 2015 | 0.63 | = | 12,961) | ÷ | 20,419) |
| Dec 31, 2014 | 0.65 | = | 13,996) | ÷ | 21,412) |
| Dec 31, 2013 | 0.62 | = | 13,983) | ÷ | 22,603) |
| Dec 31, 2012 | 0.59 | = | 13,649) | ÷ | 23,097) |
| Dec 31, 2011 | 0.59 | = | 13,378) | ÷ | 22,569) |
| Dec 31, 2010 | 0.58 | = | 12,515) | ÷ | 21,476) |
| Dec 31, 2009 | 0.56 | = | 11,791) | ÷ | 21,154) |
| Dec 31, 2008 | 0.66 | = | 13,388) | ÷ | 20,227) |
| Dec 31, 2007 | 0.66 | = | 13,310) | ÷ | 20,175) |
| Dec 31, 2006 | 0.65 | = | 13,363) | ÷ | 20,600) |
| Dec 31, 2005 | 0.62 | = | 13,074) | ÷ | 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 total asset turnover from 2005 to 2021 reveals a pattern of general stability interrupted by two distinct periods of volatility. For the majority of the observed timeframe, the efficiency ratio fluctuated within a narrow band between 0.58 and 0.66, suggesting a consistent relationship between the asset base and revenue generation.
- Long-term Stability and Asset Utilization
- Between 2005 and 2018, total assets remained relatively stable, ranging from approximately US$20 billion to US$23 billion. Operating revenues during this period grew modestly, allowing the total asset turnover ratio to maintain a consistent level, peaking at 0.66 in 2007, 2008, 2017, and 2018. This indicates a period of steady operational efficiency.
- Periods of Efficiency Decline
- Two significant dips in the turnover ratio are observable. The first occurred in 2009, when the ratio fell to 0.56 following a decrease in operating revenues to US$11.79 billion. A more substantial decline took place between 2019 and 2020, where the ratio dropped to 0.56 and subsequently to a period low of 0.52. This second decline was driven by a sharp expansion of the asset base, which increased from US$22.65 billion in 2018 to US$29.35 billion in 2020, significantly outpacing the growth in revenues during those two years.
- Recovery and Recent Trends
- A strong recovery in efficiency is noted in 2021, with the total asset turnover ratio rising back to 0.62. This improvement was driven by a substantial increase in operating revenues, which reached US$17.93 billion, the highest value in the analyzed period. This revenue growth effectively mitigated the impact of the expanded asset base, returning the company's asset utilization to levels seen in the mid-2010s.
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Comparison to Industry (Industrials)
Waste Management Inc., total asset turnover, long-term trends, comparison to industry (industrials)
| Waste Management Inc. | Industrials | |
|---|---|---|
| Dec 31, 2021 | 0.62 | 0.58 |
| Dec 31, 2020 | 0.52 | 0.50 |
| Dec 31, 2019 | 0.56 | 0.62 |
| Dec 31, 2018 | 0.66 | 0.67 |
| Dec 31, 2017 | 0.66 | 0.62 |
| Dec 31, 2016 | 0.65 | 0.61 |
| Dec 31, 2015 | 0.63 | 0.54 |
| Dec 31, 2014 | 0.65 | 0.49 |
| Dec 31, 2013 | 0.62 | 0.47 |
| Dec 31, 2012 | 0.59 | 0.46 |
| Dec 31, 2011 | 0.59 | 0.45 |
| Dec 31, 2010 | 0.58 | 0.41 |
| Dec 31, 2009 | 0.56 | 0.39 |
| Dec 31, 2008 | 0.66 | 0.43 |
| Dec 31, 2007 | 0.66 | 0.41 |
| Dec 31, 2006 | 0.65 | 0.43 |
| Dec 31, 2005 | 0.62 | 0.40 |
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).