Analysis of Liquidity Ratios
Liquidity ratios measure the company’s ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Waste Management Inc., liquidity ratios
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.00 | 1.97 | 0.85 | 0.80 | 0.85 | |
| Quick ratio | 0.89 | 1.87 | 0.75 | 0.73 | 0.77 | |
| Cash ratio | 0.16 | 1.13 | 0.02 | 0.01 | 0.01 |
Based on: 10-K (filing date: 2021-02-22), 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-14), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-16).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Waste Management Inc.’s current ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Waste Management Inc.’s quick ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Waste Management Inc.’s cash ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level. |
Current Ratio
Waste Management Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 3,540 | 6,209 | 2,645 | 2,624 | 2,376 | |
| Current liabilities | 3,553 | 3,144 | 3,108 | 3,262 | 2,794 | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.00 | 1.97 | 0.85 | 0.80 | 0.85 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Accenture PLC | 1.40 | 1.40 | 1.34 | 1.23 | 1.35 | |
| Automatic Data Processing Inc. | 1.05 | 1.05 | 1.05 | 1.10 | 1.10 | |
| Current Ratio, Sector | ||||||
| Support Services | 1.14 | 1.20 | 1.11 | 1.10 | 1.13 | |
| Current Ratio, Industry | ||||||
| Industrials | 1.40 | 1.18 | 1.16 | 1.27 | 1.24 | |
Based on: 10-K (filing date: 2021-02-22), 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-14), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-16).
1 2020 Calculation
Current ratio = Current assets ÷ Current liabilities
= 3,540 ÷ 3,553 = 1.00
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Waste Management Inc.’s current ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level. |
Quick Ratio
Waste Management Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 553 | 3,561 | 61 | 22 | 32 | |
| Accounts receivable, net of allowance for doubtful accounts | 2,097 | 1,949 | 1,931 | 1,805 | 1,700 | |
| Other receivables, net of allowance for doubtful accounts | 527 | 370 | 344 | 569 | 432 | |
| Total quick assets | 3,177 | 5,880 | 2,336 | 2,396 | 2,164 | |
| Current liabilities | 3,553 | 3,144 | 3,108 | 3,262 | 2,794 | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.89 | 1.87 | 0.75 | 0.73 | 0.77 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Accenture PLC | 1.29 | 1.29 | 1.24 | 1.12 | 1.25 | |
| Automatic Data Processing Inc. | 0.14 | 0.13 | 0.14 | 0.15 | 0.14 | |
| Quick Ratio, Sector | ||||||
| Support Services | 0.52 | 0.52 | 0.44 | 0.42 | 0.38 | |
| Quick Ratio, Industry | ||||||
| Industrials | 0.83 | 0.68 | 0.67 | 0.79 | 0.75 | |
Based on: 10-K (filing date: 2021-02-22), 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-14), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-16).
1 2020 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 3,177 ÷ 3,553 = 0.89
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Waste Management Inc.’s quick ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level. |
Cash Ratio
Waste Management Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 553 | 3,561 | 61 | 22 | 32 | |
| Total cash assets | 553 | 3,561 | 61 | 22 | 32 | |
| Current liabilities | 3,553 | 3,144 | 3,108 | 3,262 | 2,794 | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.16 | 1.13 | 0.02 | 0.01 | 0.01 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Accenture PLC | 0.67 | 0.55 | 0.50 | 0.42 | 0.55 | |
| Automatic Data Processing Inc. | 0.06 | 0.06 | 0.07 | 0.09 | 0.09 | |
| Cash Ratio, Sector | ||||||
| Support Services | 0.24 | 0.25 | 0.17 | 0.16 | 0.17 | |
| Cash Ratio, Industry | ||||||
| Industrials | 0.43 | 0.30 | 0.27 | 0.38 | 0.37 | |
Based on: 10-K (filing date: 2021-02-22), 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-14), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-16).
1 2020 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 553 ÷ 3,553 = 0.16
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Waste Management Inc.’s cash ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level. |