Analysis of Geographic Areas
Waste Management Inc. operates in 2 regions: U.S. and Canada.
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Area Asset Turnover
Waste Management Inc., asset turnover by geographic area
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| U.S. | |||||
| Canada |
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).
- U.S. Asset Turnover
- The asset turnover ratio in the U.S. demonstrates a declining trend from 2017 through 2020. Starting at 1.3 in 2017, it decreases steadily to 1.28 in 2018, 1.23 in 2019, and reaches a low point of 1.1 in 2020. However, in 2021, there is a notable rebound with the ratio increasing back to 1.28, matching the 2018 level. This pattern suggests a period of reduced efficiency or asset utilization over three consecutive years, followed by a recovery in the most recent year recorded.
- Canada Asset Turnover
- The Canadian asset turnover ratio shows some fluctuation but overall remains lower than the U.S. ratio across the observed periods. Beginning at 0.74 in 2017, it rises to 0.83 in 2018, then dips slightly to 0.79 in 2019, decreases further to 0.73 in 2020, and finally increases again to 0.8 in 2021. The ratio peaked in 2018, experienced a decline over the next two years, and partially recovered by 2021. Throughout the timeframe, the Canadian market demonstrates less pronounced variability compared to the U.S., but the pattern of recovery after a decline is similarly observed.
- Comparative Insights
- Overall, both regions exhibit a pattern of decline in asset turnover from 2017 or 2018 through 2020, followed by improvement in 2021. The U.S. maintains a consistently higher asset turnover ratio relative to Canada, indicating more efficient asset utilization in the U.S. market. The dip around 2020 in both geographies could suggest common external or operational challenges impacting asset turnover. The subsequent rebound in 2021 may reflect operational adjustments, market recovery, or improved asset management practices.
Area Asset Turnover: U.S.
Waste Management Inc.; U.S.; area asset turnover calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net operating revenues | |||||
| Property and equipment, net of accumulated depreciation and amortization | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2021 Calculation
Area asset turnover = Net operating revenues ÷ Property and equipment, net of accumulated depreciation and amortization
= ÷ =
- Net Operating Revenues
- The net operating revenues exhibit a general upward trend over the analyzed period. Beginning at 13,768 million USD in 2017, revenues increased incrementally each year except in 2020, where a slight decline to 14,505 million USD was observed from 14,701 million USD in 2019. This dip in 2020 may be associated with external economic factors affecting the business environment. However, by 2021, revenues rose significantly to 17,136 million USD, representing notable growth and recovery beyond pre-2020 levels.
- Property and Equipment, Net of Accumulated Depreciation and Amortization
- The net value of property and equipment showed consistent growth throughout the timeframe. Starting at 10,591 million USD in 2017, this asset base expanded sequentially each year, reaching 13,428 million USD by the end of 2021. This steady increase suggests ongoing capital investment and asset acquisition, contributing to the capacity or operational capabilities of the business in the U.S. geographic area.
- Area Asset Turnover
- The area asset turnover ratio, which measures efficiency in generating revenues from assets, demonstrates variability across years. The ratio starts at 1.3 in 2017 and gently declines to its lowest point of 1.1 in 2020, indicating reduced asset efficiency during that year. This decline corresponds with the revenue decrease observed in 2020. In 2021, the ratio rebounds to 1.28, reflecting improved utilization of assets and operational efficiency close to earlier levels.
Area Asset Turnover: Canada
Waste Management Inc.; Canada; area asset turnover calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net operating revenues | |||||
| Property and equipment, net of accumulated depreciation and amortization | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2021 Calculation
Area asset turnover = Net operating revenues ÷ Property and equipment, net of accumulated depreciation and amortization
= ÷ =
- Net Operating Revenues
- The net operating revenues show a generally positive trend over the analyzed period. Starting at 717 million US dollars in 2017, revenues increased steadily to 747 million in 2018 and 754 million in 2019. There was a noticeable decline to 713 million in 2020, possibly indicating a period of reduced demand or operational challenges, before recovering sharply to 795 million in 2021, surpassing previous levels.
- Property and Equipment, Net
- The net value of property and equipment exhibited some fluctuations but remained relatively stable overall. It decreased from 968 million US dollars in 2017 to a lower point of 898 million in 2018. Subsequently, there was an upward trend with values rising to 952 million in 2019, 980 million in 2020, and marginally increasing further to 991 million in 2021, reflecting an expansion or reinvestment in assets over time.
- Area Asset Turnover
- The area asset turnover ratio displayed variability across the years. It started at 0.74 in 2017 and improved to a peak of 0.83 in 2018, suggesting more efficient use of assets to generate revenues. However, the ratio declined to 0.79 in 2019 and further to 0.73 in 2020, indicating diminishing efficiency in asset utilization during these periods. In 2021, the ratio rebounded to 0.80, aligning closely with the level observed in 2018 and suggesting a restoration of operational efficiency.
- Summary of Trends
- Overall, the data reveal a period of revenue growth interrupted by a dip in 2020, which coincides with a temporary decline in asset turnover efficiency. The steady recovery in both revenues and asset turnover in 2021 points to successful adaptation or recovery strategies. Concurrently, the moderate increase in property and equipment net values suggests ongoing investment to support operational capacity or future growth. The interplay between these measures highlights the company's ability to manage its assets effectively to generate revenues, despite external challenges during the period.
Net operating revenues
Waste Management Inc., net operating revenues by geographic area
US$ in millions
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| U.S. | |||||
| Canada | |||||
| Total |
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).
- U.S. Net Operating Revenues
- The net operating revenues in the U.S. region exhibited a generally upward trend over the five-year period. Starting at 13,768 million US dollars in 2017, revenues increased steadily to 14,701 million in 2019 before experiencing a slight decline to 14,505 million in 2020. In 2021, a notable recovery occurred with revenues rising sharply to 17,136 million, representing the highest value in the period under review.
- Canada Net Operating Revenues
- The Canadian segment showed relatively minor fluctuations in net operating revenues, maintaining a range between 713 million and 795 million US dollars. From 717 million in 2017, revenues increased moderately to 754 million by 2019, followed by a small dip to 713 million in 2020. In 2021, revenues recovered to reach 795 million, marking the peak for the period.
- Total Net Operating Revenues
- Total net operating revenues, reflecting the sum of U.S. and Canadian operations, increased consistently from 14,485 million US dollars in 2017 to 15,455 million in 2019. A slight decrease was observed in 2020 to 15,218 million, mirroring trends in individual regions. In 2021, total revenues rose sharply to 17,931 million, driven largely by the strong recovery in the U.S. market. The overall pattern indicates resilience and growth with a brief setback in 2020, followed by significant revenue expansion.
Property and equipment, net of accumulated depreciation and amortization
Waste Management Inc., property and equipment, net of accumulated depreciation and amortization by geographic area
US$ in millions
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| U.S. | |||||
| Canada | |||||
| Total |
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).
- Overall Trend
- The net value of property and equipment in the geographic areas demonstrated a consistent upward trend from 2017 through 2021.
- U.S. Market
- In the U.S., the net property and equipment values increased steadily each year, starting from $10,591 million in 2017 and rising to $13,428 million by 2021. This represents an approximate increase of 26.8% over the five-year period, indicating ongoing investment or capital retention in this region.
- Canada Market
- The Canadian segment showed more modest fluctuations, with a slight decline from $968 million in 2017 to $898 million in 2018, followed by gradual increases in subsequent years, reaching $991 million in 2021. Despite short-term variability, the overall growth was limited to around 2.4% over the period.
- Total Net Property and Equipment
- The total net property and equipment across both regions increased from $11,559 million in 2017 to $14,419 million in 2021, marking about a 24.7% rise. The total closely mirrors the movement in the U.S., which is the larger component of the total asset base, underscoring the significant impact of the U.S. operations on the asset structure.
- Insight
- The data suggest sustained investment in property and equipment assets primarily in the U.S. market, with relatively stable conditions in Canada. The growth in net assets may reflect capital expenditures exceeding depreciation and amortization, indicating a focus on expansion or renewal of operational capabilities over the period analyzed.