Waste Management Inc. (NYSE:WM)

Debt to Equity Ratio

The debt to equity ratio remained relatively stable throughout the observed periods, fluctuating slightly around the range of 1.60 to 1.99. The ratio showed a gradual increase starting from 1.65 in March 2018 to a peak of 1.99 in March 2020, followed by a decline to 1.46 in September 2020. After this drop, the ratio steadily increased again, reaching 1.88 by December 2021. This pattern suggests periods of increased leverage followed by deleveraging, before resuming a moderate upward trend in leverage levels.

Debt to Capital Ratio

The debt to capital ratio exhibited modest variability, generally ranging between 0.59 and 0.67 across the quarters. From March 2018 through December 2018, the ratio was stable at approximately 0.62. It increased to around 0.66 by mid-2019 and peaked at 0.67 in March 2020. A noticeable decline to 0.59 occurred in September 2020, after which the ratio returned to approximately 0.65, maintaining this level through to December 2021. This stability indicates consistent capital structure management with slight shifts around the periods of the broader market or operational changes.

Debt to Assets Ratio

The debt to assets ratio followed a pattern similar to the debt to capital ratio, fluctuating between 0.42 and 0.49. The ratio was fairly consistent at around 0.44 from March 2018 through March 2019, rising to approximately 0.49 during mid to late 2019 and early 2020. A decrease to 0.42 in September 2020 marked the lowest point in the observed period, before the ratio increased again to roughly 0.46 by December 2021. This suggests that the company's asset base was moderately leveraged with slight expansions and contractions linked to debt changes.

Financial Leverage

The financial leverage ratio demonstrated an upward trend with some fluctuations. Initially, it was stable at about 3.61–3.66 during 2018, then it increased notably to above 4.0 by the end of 2019 and early 2020. Following this peak, the ratio dipped to a low of 3.46 in September 2020, indicating a temporary reduction in leverage or increase in equity or asset base. Subsequently, financial leverage rose steadily, ending at 4.08 in December 2021, the highest point in the reviewed timeframe. This increasing leverage suggests an overall growing reliance on debt or high asset turnover relative to equity over time.

The analysis of the quarterly financial data reveals distinct trends in the debt, equity, and leverage ratios over the observed periods.

Total Debt (US$ in millions)

Total debt exhibited overall fluctuations with a general upward direction from early 2018 to late 2021. Starting at approximately 9,957 million US dollars in the first quarter of 2018, the total debt rose to a peak of around 13,810 million US dollars by the fourth quarter of 2020. Notably, there was an increase during mid-2019 and some variability towards the end of 2020 and throughout 2021, where values ranged mostly between 12,900 million and 13,500 million US dollars. The data shows intermittent periods of reduction, such as the decline observed in the third quarter of 2020; however, the overall trend remains elevated compared to the initial periods in 2018.

Total Stockholders' Equity (US$ in millions)

Stockholders’ equity followed a steady growth trajectory over the same timeframe. Beginning near 6,044 million US dollars in the first quarter of 2018, the equity grew gradually each quarter, reaching approximately 7,452 million US dollars by the last quarter of 2020. A slight decline is observable in 2021, where equity values decreased from about 7,427 million in the first quarter to around 7,124 million by the fourth quarter of 2021. Despite this minor decrease, the equity levels at the end of the period under review remain higher in comparison to the initial figures, reflecting overall capital accumulation with some recent downward adjustments.

Debt to Equity Ratio

The debt to equity ratio displays noteworthy variations, evidencing shifts in the company’s financial leverage. Initially, the ratio was around 1.65 in early 2018 and remained relatively stable just above 1.6 through the first half of 2019. A marked increase occurred between the second and third quarters of 2019, where the ratio escalated near to 1.97, suggesting a heavier reliance on debt financing relative to equity. This elevated level broadly continued through 2019 and into early 2020. A significant dip to 1.46 in the third quarter of 2020 indicates a period where either debt was reduced or equity increased disproportionately. Nonetheless, the ratio rebounded quickly in subsequent quarters, stabilizing roughly between 1.8 and 1.9 throughout 2021. These patterns suggest fluctuating leverage with intermittent efforts to adjust capital structure, yet maintaining a relatively high degree of indebtedness compared to equity through most of the period analyzed.

In summary, the financial data indicates a company managing rising debt levels alongside consistent equity growth, with strategic adjustments to leverage ratios over time. The leverage ratio’s volatility notably reflects shifts in debt and equity balance, which may align with broader strategic or market considerations affecting capital structure decisions throughout the observed quarters.

The financial data reveals several notable trends in the company's capital structure over the examined periods. Total debt exhibited an overall upward trajectory from the first quarter of 2018 through the end of 2021, with fluctuations reflecting periods of both increase and decrease. Starting at approximately 9.96 billion USD in early 2018, total debt peaked noticeably around mid-2019 and again in late 2020, reaching values above 13 billion USD. Following these peaks, declines were observed, particularly after mid-2020, but the debt level remained elevated relative to the initial period.

Total capital mirrored a similar pattern, rising from roughly 16 billion USD in March 2018 to exceed 21 billion USD by the end of 2020, before stabilizing somewhat around the 20 to 21 billion USD range in 2021. The data implies that capital expansions during 2019 and 2020 were significant, although some contractions occurred subsequently.

The ratio of debt to capital demonstrated a consistent range predominantly between 0.59 and 0.67. The ratio was stable around 0.62 during 2018 and early 2019, then increased to approximately 0.66 mid-2019 and remained at elevated levels through much of 2020 and 2021. This indicates a higher reliance on debt financing relative to total capital in the latter periods compared to the earlier years. The temporary dip in the debt-to-capital ratio to 0.59 in the third quarter of 2020 corresponds with a notable reduction in total debt, but this was followed by a return to previous ratio levels by the end of 2020 and into 2021.

In summary, the company’s capital structure reflects an increased use of debt over the period, with total debt and total capital both experiencing significant growth, accompanied by a moderately elevated and stable debt-to-capital ratio during the later years. This suggests a strategic leaning toward leveraging debt as part of its capital financing, while maintaining relative stability in the proportion of debt within the overall capital base.

Total Debt

The total debt exhibited fluctuations over the observed periods. Starting at approximately $9.96 billion at the end of the first quarter of 2018, the debt level slightly declined initially but began a rising trend from early 2019, peaking around the end of 2019 and early 2020 at roughly $13.5 billion. Thereafter, a notable reduction occurred by the third quarter of 2020, coinciding with a drop to approximately $10.4 billion. Subsequently, debt increased again towards the end of 2020 and remained relatively stable through 2021, ending the period near $13.4 billion.

Total Assets

Total assets showed a steady upward trajectory throughout the timeframe. Beginning at about $22.1 billion in the first quarter of 2018, they increased modestly over the next several quarters before accelerating from 2019 onwards. Despite some slight declines during 2020, assets reached a peak near $29.3 billion at the end of 2020 and maintained relatively high levels into 2021, finishing just under $29.1 billion.

Debt to Assets Ratio

The debt to assets ratio remained relatively consistent in the range between 0.44 and 0.49 for most of the period, indicating that the company's leverage, relative to its asset base, did not undergo major structural changes. The ratio was near 0.44 during 2018, increased to around 0.49 in 2019 and early 2020, then decreased to approximately 0.42 by the third quarter of 2020. Toward the end of the period, it stabilized around 0.45 to 0.46, reflecting a moderate leverage level relative to total assets.

Summary

Overall, the financial data reveal a pattern of increasing assets combined with fluctuating debt levels. The company's leverage, as measured by the debt to assets ratio, has shown moderate variation but remained largely stable, indicating disciplined management of financial risk relative to asset growth. The temporary decline in debt during mid-2020 suggests a possible deleveraging action, which was followed by renewed borrowing in subsequent quarters. The asset base expansion suggests ongoing investment or acquisition activity supporting business growth over the observed periods.

The analysis of the financial data reveals several key trends in asset composition, equity, and leverage over the observed periods.

Total Assets

Total assets showed a general upward trend from March 2018 through December 2019, increasing from approximately $22.1 billion to $27.7 billion. This increase indicates growth in the company's asset base. However, beginning in March 2020, total assets displayed greater volatility, with a notable decline through September 2020, dropping to about $24.8 billion. Subsequently, total assets rose sharply to nearly $29.3 billion by December 2020, maintaining a relatively stable level around $29 billion through the end of 2021. This fluctuation suggests some operational or market challenges during the early part of 2020, followed by a recovery and stabilization period.

Total Stockholders’ Equity

Stockholders' equity consistently increased from approximately $6.0 billion in March 2018 to just over $7.0 billion by December 2019, reflecting an accumulation of retained earnings or other equity increases. In 2020, equity initially declined to about $6.7 billion by March but then reversed course, rising steadily to a peak of about $7.5 billion by December 2020. From 2021 onwards, equity showed a slight downward trend, concluding the period around $7.1 billion. This pattern suggests resilience in equity value with short-term impacts likely tied to economic or business disruptions during 2020.

Financial Leverage

Financial leverage ratios remained relatively stable between 3.61 and 3.66 during most of 2018 and early 2019 but increased notably in mid-2019 to around 4.0, indicating a higher reliance on debt financing relative to equity. The leverage remained near this elevated level through 2019 and into 2020, briefly decreasing to 3.46 in September 2020 but rising again towards the end of 2020 and into 2021, reaching a peak of approximately 4.08. This upward trajectory implies an increasing use of debt for financing assets, which may reflect strategic decisions to leverage growth opportunities or manage liquidity during volatile periods.

In summary, the company experienced asset growth and equity increases through 2019, followed by asset volatility and equity fluctuations during 2020, likely influenced by external market factors. Financial leverage showed a gradual increase, pointing to a greater emphasis on debt funding over the period analyzed.