Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
---|---|---|---|---|---|---|
Current ratio | 0.75 | 1.00 | 1.97 | 0.85 | 0.80 | |
Quick ratio | 0.65 | 0.89 | 1.87 | 0.75 | 0.73 | |
Cash ratio | 0.03 | 0.16 | 1.13 | 0.02 | 0.01 |
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).
Liquidity ratio | Description | The company |
---|---|---|
Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Waste Management Inc. current ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Waste Management Inc. quick ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Waste Management Inc. cash ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Current Ratio
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
Current ratio = Current assets ÷ Current liabilities
= 3,069 ÷ 4,082 = 0.75
Liquidity ratio | Description | The company |
---|---|---|
Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Waste Management Inc. current ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Quick Ratio
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
Quick ratio = Total quick assets ÷ Current liabilities
= 2,664 ÷ 4,082 = 0.65
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. quick ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Cash Ratio
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
Cash ratio = Total cash assets ÷ Current liabilities
= 118 ÷ 4,082 = 0.03
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. cash ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |