Stock Analysis on Net
Stock Analysis on Net

Waste Management Inc. (NYSE:WM)

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

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Waste Management Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2021 25.49% = 6.24% × 4.08
Sep 30, 2021 24.37% = 6.06% × 4.02
Jun 30, 2021 21.76% = 5.51% × 3.95
Mar 31, 2021 20.95% = 5.35% × 3.91
Dec 31, 2020 20.08% = 5.10% × 3.94
Sep 30, 2020 21.03% = 6.08% × 3.46
Jun 30, 2020 23.36% = 6.05% × 3.86
Mar 31, 2020 24.97% = 6.20% × 4.03
Dec 31, 2019 23.63% = 6.02% × 3.93
Sep 30, 2019 25.85% = 6.47% × 4.00
Jun 30, 2019 27.19% = 6.77% × 4.02
Mar 31, 2019 29.24% = 8.03% × 3.64
Dec 31, 2018 30.68% = 8.50% × 3.61
Sep 30, 2018 36.82% = 10.17% × 3.62
Jun 30, 2018 36.08% = 9.92% × 3.64
Mar 31, 2018 33.87% = 9.26% × 3.66
Dec 31, 2017 32.38% = 8.93% × 3.63
Sep 30, 2017 — = — × 3.97
Jun 30, 2017 — = — × 3.80
Mar 31, 2017 — = — × 3.74

Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q4 2021 is the increase in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Waste Management Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2021 25.49% = 10.13% × 0.62 × 4.08
Sep 30, 2021 24.37% = 10.09% × 0.60 × 4.02
Jun 30, 2021 21.76% = 9.69% × 0.57 × 3.95
Mar 31, 2021 20.95% = 9.97% × 0.54 × 3.91
Dec 31, 2020 20.08% = 9.83% × 0.52 × 3.94
Sep 30, 2020 21.03% = 10.04% × 0.61 × 3.46
Jun 30, 2020 23.36% = 10.66% × 0.57 × 3.86
Mar 31, 2020 24.97% = 10.87% × 0.57 × 4.03
Dec 31, 2019 23.63% = 10.81% × 0.56 × 3.93
Sep 30, 2019 25.85% = 11.35% × 0.57 × 4.00
Jun 30, 2019 27.19% = 11.49% × 0.59 × 4.02
Mar 31, 2019 29.24% = 12.42% × 0.65 × 3.64
Dec 31, 2018 30.68% = 12.91% × 0.66 × 3.61
Sep 30, 2018 36.82% = 15.60% × 0.65 × 3.62
Jun 30, 2018 36.08% = 14.94% × 0.66 × 3.64
Mar 31, 2018 33.87% = 14.06% × 0.66 × 3.66
Dec 31, 2017 32.38% = 13.46% × 0.66 × 3.63
Sep 30, 2017 — = — × — × 3.97
Jun 30, 2017 — = — × — × 3.80
Mar 31, 2017 — = — × — × 3.74

Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q4 2021 is the increase in efficiency measured by asset turnover ratio.

Two-Component Disaggregation of ROA

Waste Management Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2021 6.24% = 10.13% × 0.62
Sep 30, 2021 6.06% = 10.09% × 0.60
Jun 30, 2021 5.51% = 9.69% × 0.57
Mar 31, 2021 5.35% = 9.97% × 0.54
Dec 31, 2020 5.10% = 9.83% × 0.52
Sep 30, 2020 6.08% = 10.04% × 0.61
Jun 30, 2020 6.05% = 10.66% × 0.57
Mar 31, 2020 6.20% = 10.87% × 0.57
Dec 31, 2019 6.02% = 10.81% × 0.56
Sep 30, 2019 6.47% = 11.35% × 0.57
Jun 30, 2019 6.77% = 11.49% × 0.59
Mar 31, 2019 8.03% = 12.42% × 0.65
Dec 31, 2018 8.50% = 12.91% × 0.66
Sep 30, 2018 10.17% = 15.60% × 0.65
Jun 30, 2018 9.92% = 14.94% × 0.66
Mar 31, 2018 9.26% = 14.06% × 0.66
Dec 31, 2017 8.93% = 13.46% × 0.66
Sep 30, 2017 — = — × —
Jun 30, 2017 — = — × —
Mar 31, 2017 — = — × —

Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

The primary reason for the increase in return on assets ratio (ROA) over Q4 2021 is the increase in asset turnover ratio.