Stock Analysis on Net
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 Profitability Ratios 
Quarterly Data

Microsoft Excel

Profitability ratios measure the company ability to generate profitable sales from its resources (assets).

Profitability Ratios (Summary)

Waste Management Inc., profitability ratios (quarterly data)

Microsoft Excel
Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Return on Sales
Gross profit margin 38.03% 38.48% 38.96% 38.94% 38.62% 38.95% 38.66% 38.49% 38.56% 38.12% 37.98% 37.99% 37.98% 37.97% 38.01% 37.90%
Operating profit margin 16.54% 16.75% 16.80% 16.10% 15.99% 16.24% 16.48% 17.16% 17.51% 18.24% 18.18% 18.56% 18.70% 18.51% 18.66% 18.45%
Net profit margin 10.13% 10.09% 9.69% 9.97% 9.83% 10.04% 10.66% 10.87% 10.81% 11.35% 11.49% 12.42% 12.91% 15.60% 14.94% 14.06%
Return on Investment
Return on equity (ROE) 25.49% 24.37% 21.76% 20.95% 20.08% 21.03% 23.36% 24.97% 23.63% 25.85% 27.19% 29.24% 30.68% 36.82% 36.08% 33.87%
Return on assets (ROA) 6.24% 6.06% 5.51% 5.35% 5.10% 6.08% 6.05% 6.20% 6.02% 6.47% 6.77% 8.03% 8.50% 10.17% 9.92% 9.26%

Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

Gross Profit Margin
The gross profit margin remained relatively stable throughout the observed period, consistently hovering around the 38% mark. Minor fluctuations occurred, with a slight upward trend noted in late 2019 and early 2020, reaching a peak near 38.95%, before settling slightly lower but still above 38% by the end of 2021.
Operating Profit Margin
The operating profit margin showed a gradual decline over the timeframe. Beginning above 18%, it experienced a steady decrease, notably dropping from approximately 18.7% at the end of 2018 to under 16% by the end of 2020. A mild recovery is visible in 2021, with margins improving to around 16.5%, yet remaining below earlier levels.
Net Profit Margin
The net profit margin displayed a downward trajectory from early 2018 through 2020, decreasing from about 14% to a low near 9.8%. Despite this decline, the margin stabilized and slightly improved in 2021, ending close to 10.1%. The overall trend indicates pressure on profitability at the net profit level during the period.
Return on Equity (ROE)
ROE decreased significantly from a high above 36% in mid-2018 to approximately 20% by the end of 2020. However, from 2021 onwards, there was a clear recovery, with ROE rising steadily and reaching above 25% by the end of 2021. This suggests improved effectiveness in generating shareholder returns after a notable dip.
Return on Assets (ROA)
Similar to ROE, ROA experienced a decline from over 10% in late 2018 to a low near 5.1% by the end of 2020. Subsequently, it showed gradual improvement during 2021, climbing back above 6% towards the end of the year. This reflects modest gains in asset utilization efficiency after a period of weakening.

Return on Sales

Return on Investment

Gross Profit Margin

Waste Management Inc., gross profit margin calculation (quarterly data)

Microsoft Excel
Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Selected Financial Data (US$ in millions)
Gross profit 1,723 1,759 1,740 1,598 1,567 1,529 1,381 1,400 1,532 1,526 1,503 1,398 1,463 1,449 1,426 1,327
Operating revenues 4,678 4,665 4,476 4,112 4,067 3,861 3,561 3,729 3,846 3,967 3,946 3,696 3,842 3,822 3,739 3,511
Profitability Ratio
Gross profit margin1 38.03% 38.48% 38.96% 38.94% 38.62% 38.95% 38.66% 38.49% 38.56% 38.12% 37.98% 37.99% 37.98% 37.97% 38.01% 37.90%

Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

1 Q4 2021 Calculation
Gross profit margin = 100 × (Gross profitQ4 2021 + Gross profitQ3 2021 + Gross profitQ2 2021 + Gross profitQ1 2021) ÷ (Operating revenuesQ4 2021 + Operating revenuesQ3 2021 + Operating revenuesQ2 2021 + Operating revenuesQ1 2021)
= 100 × (1,723 + 1,759 + 1,740 + 1,598) ÷ (4,678 + 4,665 + 4,476 + 4,112) = 38.03%

Gross Profit Trend
The gross profit demonstrated a general upward trajectory from the first quarter of 2018 through the end of 2021. Starting at 1,327 million US dollars in the first quarter of 2018, the gross profit increased steadily, peaking at 1,759 million US dollars in the third quarter of 2021 before experiencing a slight decline to 1,723 million US dollars by the last quarter of 2021. Notable fluctuations occurred during 2020, with a dip in the second quarter followed by recovery in subsequent quarters.
Operating Revenues Trend
Operating revenues fluctuated across the quarters but retained an overall growth pattern during the period. Beginning at 3,511 million US dollars in Q1 2018, revenues rose steadily with periods of minor decline, particularly visible in mid-2020. Revenues peaked at 4,678 million US dollars in Q4 2021, indicating a robust increase compared to the starting period. The data suggest resilience and recovery after the mid-2020 downturn, possibly reflecting adaptation to external challenges.
Gross Profit Margin Analysis
The gross profit margin percentage remained relatively stable throughout the period, consistently hovering around 38%. Minor variations occurred within a narrow range, with the lowest margin at 37.9% in early 2018 and the highest reaching approximately 38.95% in the latter part of 2020 and early 2021. This stability suggests maintained efficiency in cost management relative to revenues despite market fluctuations.
Overall Observations
The financial data reflect consistent growth in both gross profit and operating revenues over the four-year span with slight volatility during the 2020 period. The gross profit margin's steadiness throughout indicates effective operational control amidst varying revenue levels. This pattern signals the company's ability to sustain profitability as revenues expand, demonstrating operational resilience and solid financial management practices.

Operating Profit Margin

Waste Management Inc., operating profit margin calculation (quarterly data)

Microsoft Excel
Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Selected Financial Data (US$ in millions)
Income from operations 718 806 791 650 654 680 527 573 655 734 696 621 767 699 715 608
Operating revenues 4,678 4,665 4,476 4,112 4,067 3,861 3,561 3,729 3,846 3,967 3,946 3,696 3,842 3,822 3,739 3,511
Profitability Ratio
Operating profit margin1 16.54% 16.75% 16.80% 16.10% 15.99% 16.24% 16.48% 17.16% 17.51% 18.24% 18.18% 18.56% 18.70% 18.51% 18.66% 18.45%

Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

1 Q4 2021 Calculation
Operating profit margin = 100 × (Income from operationsQ4 2021 + Income from operationsQ3 2021 + Income from operationsQ2 2021 + Income from operationsQ1 2021) ÷ (Operating revenuesQ4 2021 + Operating revenuesQ3 2021 + Operating revenuesQ2 2021 + Operating revenuesQ1 2021)
= 100 × (718 + 806 + 791 + 650) ÷ (4,678 + 4,665 + 4,476 + 4,112) = 16.54%

The financial data reveals distinct trends in the company's operational performance and profitability over the analyzed periods. The income from operations exhibits seasonal fluctuations, with a recurring pattern of quarterly variation. Notably, income from operations reached peaks towards the end of each year, with the December quarters of 2018 and 2021 showing higher values relative to adjacent quarters. There is an observable dip in income from operations during mid-2020, which may correspond to external challenges impacting operations during that period. Following this dip, a recovery trend is apparent, culminating in higher income figures by the end of 2021 compared to early 2018 levels.

Operating revenues demonstrate a general upward trajectory despite some quarter-to-quarter volatility. Beginning with revenues just above 3,500 million US dollars in early 2018, there is a gradual increase across the years. Revenues experienced a decline during the first half of 2020, consistent with the downturn noted in income from operations. However, a rebound occurs afterward, with revenues reaching new highs in 2021, surpassing the 4,600 million US dollars mark by the final quarter. This suggests effective strategies or market recovery aiding revenue growth.

The operating profit margin shows a gradual decline over the years under review. Starting at approximately 18.5% in 2018, the margin decreased steadily to about 16.5% by the end of 2021. The most notable decline aligns with the mid-2020 period, where the margin dropped below 16%, indicating increased costs or reduced operational efficiency during this timeframe. Despite a slight recovery in margin percentages in late 2021, the overall trend reflects pressure on profitability margins over time.

Income from Operations
Displays seasonal variations with peaks in year-end quarters; experiences a dip mid-2020 followed by recovery through 2021.
Operating Revenues
Shows general growth trend, recovering from a downturn in early 2020 to reach record highs at the end of 2021.
Operating Profit Margin
Gradually decreases from around 18.5% in early 2018 to approximately 16.5% by end 2021, indicating margin compression.

Net Profit Margin

Waste Management Inc., net profit margin calculation (quarterly data)

Microsoft Excel
Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Selected Financial Data (US$ in millions)
Net income attributable to Waste Management, Inc. 506 538 351 421 438 390 307 361 447 495 381 347 531 499 499 396
Operating revenues 4,678 4,665 4,476 4,112 4,067 3,861 3,561 3,729 3,846 3,967 3,946 3,696 3,842 3,822 3,739 3,511
Profitability Ratio
Net profit margin1 10.13% 10.09% 9.69% 9.97% 9.83% 10.04% 10.66% 10.87% 10.81% 11.35% 11.49% 12.42% 12.91% 15.60% 14.94% 14.06%

Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

1 Q4 2021 Calculation
Net profit margin = 100 × (Net income attributable to Waste Management, Inc.Q4 2021 + Net income attributable to Waste Management, Inc.Q3 2021 + Net income attributable to Waste Management, Inc.Q2 2021 + Net income attributable to Waste Management, Inc.Q1 2021) ÷ (Operating revenuesQ4 2021 + Operating revenuesQ3 2021 + Operating revenuesQ2 2021 + Operating revenuesQ1 2021)
= 100 × (506 + 538 + 351 + 421) ÷ (4,678 + 4,665 + 4,476 + 4,112) = 10.13%

Operating Revenues
The operating revenues exhibit a general upward trend over the observed periods. From early 2018 through the end of 2021, revenues increased from approximately 3,511 million USD to about 4,678 million USD. Despite some fluctuations in mid-2019 and early 2020, the overall trajectory remained positive, with notable growth seen particularly from early 2021 onwards, where each quarter surpassed the prior year's corresponding quarter.
Net Income Attributable
Net income attributable to the company showed variability across the quarters. Starting at 396 million USD in Q1 2018, it peaked at various points such as 531 million USD in Q4 2018 and again 538 million USD in Q3 2021. Mid-2020 reflected a dip in earnings with a trough of 307 million USD in Q2 2020, likely influenced by external factors impacting profitability. Toward the end of 2021, net income rebounded strongly, demonstrating resilience and recovery compared to the mid-2020 low.
Net Profit Margin
The net profit margin reveals a gradual decline over the four-year period. Starting at about 14.06% in Q1 2018, the margin dropped below 10% by late 2020, hitting a low near 9.83%. Although there was a slight recovery in 2021 reaching around 10.13%, the margin remained below the levels achieved in earlier years. This suggests increasing cost pressures or changes in expense structures relative to revenues, despite rising sales figures.
Overall Insights
The analysis points to a company experiencing steady revenue growth while facing challenges in maintaining profit margins and consistent net income levels. The decline in net profit margin amidst increasing revenues indicates rising costs or competitive pressures. Net income volatility, especially the dip in mid-2020, suggests sensitivity to market or operational disruptions. The rebound in income and margins in late 2021 is a positive indicator of operational adjustment and financial recovery.

Return on Equity (ROE)

Waste Management Inc., ROE calculation (quarterly data)

Microsoft Excel
Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Selected Financial Data (US$ in millions)
Net income attributable to Waste Management, Inc. 506 538 351 421 438 390 307 361 447 495 381 347 531 499 499 396
Total Waste Management, Inc. stockholders’ equity 7,124 7,172 7,352 7,427 7,452 7,155 6,891 6,743 7,068 6,785 6,466 6,415 6,275 6,239 6,054 6,044
Profitability Ratio
ROE1 25.49% 24.37% 21.76% 20.95% 20.08% 21.03% 23.36% 24.97% 23.63% 25.85% 27.19% 29.24% 30.68% 36.82% 36.08% 33.87%

Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

1 Q4 2021 Calculation
ROE = 100 × (Net income attributable to Waste Management, Inc.Q4 2021 + Net income attributable to Waste Management, Inc.Q3 2021 + Net income attributable to Waste Management, Inc.Q2 2021 + Net income attributable to Waste Management, Inc.Q1 2021) ÷ Total Waste Management, Inc. stockholders’ equity
= 100 × (506 + 538 + 351 + 421) ÷ 7,124 = 25.49%

The analysis of the quarterly financial data reveals several key trends regarding profitability, equity, and return on equity (ROE).

Net Income
The net income attributable showed fluctuations over the observed periods. Initially, there was strong growth from March 2018 through December 2018, peaking at 531 million USD. However, a decline followed in the first half of 2019, with net income dropping to 347 million USD in March 2019 before recovering to 495 million USD by September 2019. The subsequent quarters displayed some volatility, with a noticeable dip during the mid-year quarters of 2020, likely influenced by external factors during that time. By the end of 2021, net income rebounded to higher levels, reaching 538 million USD in September 2021.
Total Stockholders’ Equity
The total stockholders’ equity demonstrated a generally increasing trend over the four-year period. Starting from 6,044 million USD in March 2018, it steadily rose to reach a peak of 7,452 million USD by December 2020. After this peak, equity levels exhibited a slight decline in 2021 but remained elevated compared to the earlier years, suggesting sustained capital growth and accumulation of retained earnings.
Return on Equity (ROE)
The ROE, expressed as a percentage, initially showed a declining trend from a high point of 36.82% in September 2018 to 23.63% by December 2019. This downward movement indicates that profitability relative to shareholders' equity decreased during this period. The ROE continued to decline into 2020, reaching its lowest level at 20.08% in December 2020. Nevertheless, in 2021, the ROE began to improve, climbing from 20.95% in the first quarter to 25.49% by the end of the year, suggesting enhanced efficiency in generating returns on equity towards the latter part of the timeframe.

Overall, the company experienced variability in net income and ROE over the five years analyzed. The stockholders’ equity grew consistently, which may have mitigated some of the pressure on ROE despite fluctuations in net income. The recovery in net income and ROE during 2021 indicates positive momentum in financial performance following a period of relative decline.

Return on Assets (ROA)

Waste Management Inc., ROA calculation (quarterly data)

Microsoft Excel
Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Selected Financial Data (US$ in millions)
Net income attributable to Waste Management, Inc. 506 538 351 421 438 390 307 361 447 495 381 347 531 499 499 396
Total assets 29,097 28,841 29,037 29,070 29,345 24,772 26,619 27,178 27,743 27,109 25,986 23,373 22,650 22,591 22,014 22,106
Profitability Ratio
ROA1 6.24% 6.06% 5.51% 5.35% 5.10% 6.08% 6.05% 6.20% 6.02% 6.47% 6.77% 8.03% 8.50% 10.17% 9.92% 9.26%

Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

1 Q4 2021 Calculation
ROA = 100 × (Net income attributable to Waste Management, Inc.Q4 2021 + Net income attributable to Waste Management, Inc.Q3 2021 + Net income attributable to Waste Management, Inc.Q2 2021 + Net income attributable to Waste Management, Inc.Q1 2021) ÷ Total assets
= 100 × (506 + 538 + 351 + 421) ÷ 29,097 = 6.24%

Net Income Attributable to Waste Management, Inc.
The net income exhibits some fluctuations across the reported periods. Initial quarters of 2018 show a gradual increase, peaking at 531 million USD by the end of 2018. Subsequently, there is a notable decline reaching a low point in the second quarter of 2020 at 307 million USD, possibly indicating operational challenges or market impacts during that time. Recovery is seen from the third quarter of 2020 onwards, with net income rising again and reaching 538 million USD in the third quarter of 2021, followed by a slight decrease at the end of 2021.
Total Assets
Total assets demonstrate an overall growth trend with some volatility. From roughly 22.1 billion USD at the beginning of 2018, assets increase steadily, surpassing 27 billion USD by the end of 2019. A slight dip occurs during 2020, where total assets drop to around 24.8 billion USD by the third quarter, followed by recovery to nearly 29 billion USD by mid-2021. The asset base stabilizes towards the end of 2021, suggesting investments or asset restructuring during the period.
Return on Assets (ROA)
ROA follows a declining trajectory over the period. Starting at a relatively strong 9.26% in early 2018, it reaches a peak of over 10% mid-year but then steadily declines through 2019 and 2020, bottoming at approximately 5.1% in the last quarter of 2020. A modest recovery is observed in 2021, with ROA rising to just above 6% by the end of that year. This indicates reduced efficiency in generating profit from assets during 2019-2020, with some stabilization or improvement afterwards.