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.

Analysis of Liquidity Ratios

Microsoft Excel

Liquidity ratios measure the company ability to meet its short-term obligations.


Liquidity Ratios (Summary)

Waste Management Inc., liquidity ratios

Microsoft Excel
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

Waste Management Inc., current ratio calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Current assets 3,069 3,540 6,209 2,645 2,624
Current liabilities 4,082 3,553 3,144 3,108 3,262
Liquidity Ratio
Current ratio1 0.75 1.00 1.97 0.85 0.80
Benchmarks
Current Ratio, Industry
Industrials 1.32 1.43 1.19

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

Waste Management Inc., quick ratio calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Cash and cash equivalents 118 553 3,561 61 22
Accounts receivable, net of allowance for doubtful accounts 2,278 2,097 1,949 1,931 1,805
Other receivables, net of allowance for doubtful accounts 268 527 370 344 569
Total quick assets 2,664 3,177 5,880 2,336 2,396
 
Current liabilities 4,082 3,553 3,144 3,108 3,262
Liquidity Ratio
Quick ratio1 0.65 0.89 1.87 0.75 0.73
Benchmarks
Quick Ratio, Industry
Industrials 0.79 0.88 0.71

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

Waste Management Inc., cash ratio calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Cash and cash equivalents 118 553 3,561 61 22
Total cash assets 118 553 3,561 61 22
 
Current liabilities 4,082 3,553 3,144 3,108 3,262
Liquidity Ratio
Cash ratio1 0.03 0.16 1.13 0.02 0.01
Benchmarks
Cash Ratio, Industry
Industrials 0.36 0.46 0.34

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.