Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Waste Management Inc. (NYSE:WM)

Analysis of Liquidity Ratios

Beginner level

Liquidity Ratios (Summary)

Waste Management Inc., liquidity ratios

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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.