Analysis of Reportable Segments
Waste Management Inc. operates in 2 segments: East Tier and West Tier.
Segment Profit Margin
Waste Management Inc., profit margin by reportable segment
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| East Tier | 21.96% | 21.24% | 22.81% | — | — |
| West Tier | 22.45% | 21.84% | 23.33% | — | — |
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).
- East Tier Segment Profit Margin
- The East Tier segment shows data starting from 2019, with an initial profit margin of 22.81%. In the subsequent year, 2020, there was a slight decrease to 21.24%. However, the margin rebounded in 2021 to 21.96%, indicating a modest recovery but remaining below the 2019 level.
- West Tier Segment Profit Margin
- The West Tier segment's profit margin also begins reporting in 2019 at 23.33%. This margin declined to 21.84% in 2020, reflecting a noticeable decrease. In 2021, a partial recovery occurred, with the margin rising to 22.45%, though it did not reach the initial 2019 value.
- Overall Trend
- Both segments exhibit similar patterns, with profit margins declining in 2020, followed by partial recoveries in 2021. The East Tier consistently has slightly lower margins compared to the West Tier across the observed periods. The decreases in 2020 might indicate challenges faced during that period, with subsequent improvements suggesting some normalization or operational adjustments in 2021.
Segment Profit Margin: East Tier
Waste Management Inc.; East Tier; segment profit margin calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Income from operations | 2,037) | 1,672) | 1,847) | —) | —) |
| Gross operating revenues | 9,278) | 7,873) | 8,098) | —) | —) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 21.96% | 21.24% | 22.81% | — | — |
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
Segment profit margin = 100 × Income from operations ÷ Gross operating revenues
= 100 × 2,037 ÷ 9,278 = 21.96%
- Income from operations
- Income from operations displayed a downward trend from 2020 to 2021 followed by a notable recovery in 2022. Specifically, the income was 1,847 million US dollars in 2020, decreased to 1,672 million US dollars in 2021, and then increased to 2,037 million US dollars in 2022.
- Gross operating revenues
- Gross operating revenues declined between 2020 and 2021, moving from 8,098 million US dollars to 7,873 million US dollars, representing a contraction in revenue. This was followed by a strong rebound in 2022, with revenues increasing to 9,278 million US dollars, indicating a recovery and growth beyond previous levels.
- Segment profit margin
- The segment profit margin showed a decreasing trend from 2020 to 2021, dropping from 22.81% to 21.24%. However, there was an improvement in 2022, with the margin rising to 21.96%, slightly recovering from the earlier decline but not reaching the 2020 level.
Segment Profit Margin: West Tier
Waste Management Inc.; West Tier; segment profit margin calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Income from operations | 2,103) | 1,800) | 1,934) | —) | —) |
| Gross operating revenues | 9,369) | 8,241) | 8,289) | —) | —) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 22.45% | 21.84% | 23.33% | — | — |
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
Segment profit margin = 100 × Income from operations ÷ Gross operating revenues
= 100 × 2,103 ÷ 9,369 = 22.45%
- Income from Operations
- Income from operations displays a positive trend over the three reported years. It increased from $1,934 million in 2019 to $2,103 million in 2021, representing overall growth despite a slight decline to $1,800 million in 2020. This suggests a temporary dip in operational income during 2020, followed by a significant recovery and improvement in 2021.
- Gross Operating Revenues
- Gross operating revenues remained relatively stable between 2019 and 2020, with a slight decrease from $8,289 million to $8,241 million. However, revenue then showed a notable increase in 2021, reaching $9,369 million. This pattern indicates a modest contraction likely related to external conditions in 2020, succeeded by a robust revenue expansion in the following year.
- Segment Profit Margin (%)
- The segment profit margin followed a somewhat fluctuating path, beginning at 23.33% in 2019 and decreasing to 21.84% in 2020. There was a partial recovery to 22.45% in 2021, although the margin did not return to the 2019 level. This trend reflects some margin pressure in 2020, possibly attributable to increased costs or pricing challenges, with a subsequent improvement suggesting enhanced operational efficiency or cost control in 2021 but still below earlier profitability.
- Overall Analysis
- The data reveals a segment that experienced a downturn in operational performance around 2020, marked by decreases in income from operations, revenues, and profit margin. The subsequent year, 2021, showed recovery and growth across these financial indicators, with revenues and income from operations exceeding previous levels. The profit margin also improved but remained slightly below the 2019 figure. This overall pattern indicates resilience and an ability to rebound following a period of headwinds, highlighting a generally positive trajectory in the latest year reported.
Segment Return on Assets (Segment ROA)
Waste Management Inc., ROA by reportable segment
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| East Tier | 14.28% | 11.71% | 15.92% | — | — |
| West Tier | 18.33% | 15.65% | 19.90% | — | — |
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).
- East Tier Segment ROA
- The East Tier segment's Return on Assets (ROA) data is available starting from 2019. In 2019, the ROA was 15.92%. This figure declined to 11.71% in 2020, indicating a reduction in asset profitability during that period. In 2021, the ROA partially recovered to 14.28%, suggesting a rebound in operational efficiency, though it did not fully return to the 2019 level.
- West Tier Segment ROA
- The West Tier segment's ROA also begins reporting from 2019, with an initial value of 19.9%. Similar to the East Tier, the ROA decreased to 15.65% in 2020, illustrating a decline in asset returns. However, in 2021, there was a notable increase to 18.33%, reflecting an improvement and a near return to the 2019 profitability level.
- Comparative Analysis
- Both segments experienced a downward trend in ROA in 2020 followed by recovery in 2021. The West Tier consistently exhibited higher ROA values than the East Tier throughout the observed periods. The magnitude of decline from 2019 to 2020 and the subsequent recovery in 2021 were similar in pattern for both segments, suggesting shared external or internal factors influencing asset returns. The partial recovery in ROA across both segments in 2021 indicates an improvement in operational performance but highlights continued variability compared to pre-2020 levels.
Segment ROA: East Tier
Waste Management Inc.; East Tier; segment ROA calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Income from operations | 2,037) | 1,672) | 1,847) | —) | —) |
| Total assets | 14,269) | 14,274) | 11,600) | —) | —) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 14.28% | 11.71% | 15.92% | — | — |
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
Segment ROA = 100 × Income from operations ÷ Total assets
= 100 × 2,037 ÷ 14,269 = 14.28%
- Income from operations
- The income from operations demonstrates a fluctuating pattern over the observed periods. Starting at 1,847 million US dollars in 2019, it declined to 1,672 million US dollars in 2020, indicating a decrease in operational profitability. However, in 2021, there was a notable recovery, with income rising to 2,037 million US dollars, surpassing the 2019 level.
- Total assets
- Total assets showed significant growth from 2019 through 2020, increasing from 11,600 million US dollars to 14,274 million US dollars. This growth plateaued in 2021, with total assets remaining relatively stable at 14,269 million US dollars, suggesting a period of asset base stabilization after a phase of expansion.
- Segment Return on Assets (ROA)
- The segment ROA indicates a decline from 15.92% in 2019 to 11.71% in 2020, reflecting reduced efficiency in asset utilization to generate returns during that period. In 2021, the ROA partially rebounded to 14.28%, showing improved asset productivity but still below the 2019 level. This trend aligns with the movements observed in income from operations and total assets.
Segment ROA: West Tier
Waste Management Inc.; West Tier; segment ROA calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Income from operations | 2,103) | 1,800) | 1,934) | —) | —) |
| Total assets | 11,476) | 11,501) | 9,720) | —) | —) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 18.33% | 15.65% | 19.90% | — | — |
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
Segment ROA = 100 × Income from operations ÷ Total assets
= 100 × 2,103 ÷ 11,476 = 18.33%
- Income from Operations
- The income from operations exhibited an initial increase from 1,934 million US dollars in 2019 to 2,103 million US dollars in 2021, despite a decline to 1,800 million US dollars in 2020. This suggests a recovery and growth after a downturn in 2020.
- Total Assets
- Total assets grew significantly from 9,720 million US dollars in 2019 to 11,501 million US dollars in 2020, then slightly decreased to 11,476 million US dollars in 2021. Overall, the asset base expanded considerably over the period with a minor contraction at the end.
- Segment Return on Assets (ROA)
- The segment ROA declined from 19.9% in 2019 to 15.65% in 2020, indicating a drop in asset profitability. However, it recovered to 18.33% in 2021, approaching its earlier level but remaining below the 2019 peak, reflecting improved but not fully restored efficiency in asset use.
Segment Asset Turnover
Waste Management Inc., asset turnover by reportable segment
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| East Tier | 0.65 | 0.55 | 0.70 | — | — |
| West Tier | 0.82 | 0.72 | 0.85 | — | — |
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).
- East Tier Segment Asset Turnover
- The East Tier segment asset turnover data begins in 2020, showing an initial value of 0.7. This value declines to 0.55 in 2021, representing a notable decrease in the efficiency with which assets are generating revenue. However, there is a subsequent recovery in 2022 with the ratio increasing to 0.65, indicating an improvement in asset utilization compared to the previous year, though it remains below the 2020 level. The trend shows some volatility, with an early decrease followed by a partial rebound.
- West Tier Segment Asset Turnover
- For the West Tier segment, the asset turnover ratio also starts being reported in 2020, at 0.85. A decline is observed in 2021, dropping to 0.72, signaling reduced asset efficiency. In 2022, the ratio climbs back to 0.82, nearly recovering to the initial 2020 figure. This pattern mirrors that of the East Tier segment, marking a decrease in 2021 followed by a recovery in 2022, though the turnover remains slightly below its initial value.
- Comparative Insights
- Both segments exhibit similar trends over the observed periods, with a dip in asset turnover ratios in 2021 and a partial recovery in 2022. The West Tier consistently maintains higher turnover ratios than the East Tier, suggesting relatively better asset efficiency. The fluctuations may point to external factors affecting asset utilization in 2021, followed by operational adjustments or market improvements in the subsequent year. Nevertheless, neither segment fully returned to its 2020 peak by the end of 2022, indicating room for further enhancement in asset management.
Segment Asset Turnover: East Tier
Waste Management Inc.; East Tier; segment asset turnover calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Gross operating revenues | 9,278) | 7,873) | 8,098) | —) | —) |
| Total assets | 14,269) | 14,274) | 11,600) | —) | —) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 0.65 | 0.55 | 0.70 | — | — |
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
Segment asset turnover = Gross operating revenues ÷ Total assets
= 9,278 ÷ 14,269 = 0.65
- Gross Operating Revenues
- The gross operating revenues demonstrated variability over the three years of available data, starting at 8,098 million US$ in 2019, declining to 7,873 million US$ in 2020, and then increasing significantly to 9,278 million US$ in 2021. This indicates a temporary downturn in 2020, followed by a strong recovery and growth in the latest year.
- Total Assets
- Total assets increased substantially from 11,600 million US$ in 2019 to 14,274 million US$ in 2020, with a slight decrease to 14,269 million US$ in 2021. This reflects considerable asset expansion in 2020, stabilizing in the subsequent year.
- Segment Asset Turnover
- The segment asset turnover ratio shows a declining trend from 0.70 in 2019 to 0.55 in 2020, followed by a partial rebound to 0.65 in 2021. This pattern suggests reduced efficiency in generating revenues from assets in 2020, with some improvement seen in 2021 but not reaching prior levels.
- Overall Observations
- The data reveals a challenging year in 2020 characterized by reduced revenues and asset efficiency, coupled with significant asset growth. The subsequent year showed recovery in revenues and improved efficiency, though asset levels remained relatively stable. These trends highlight a period of adjustment and recovery within the segment during the covered timeframe.
Segment Asset Turnover: West Tier
Waste Management Inc.; West Tier; segment asset turnover calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Gross operating revenues | 9,369) | 8,241) | 8,289) | —) | —) |
| Total assets | 11,476) | 11,501) | 9,720) | —) | —) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 0.82 | 0.72 | 0.85 | — | — |
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
Segment asset turnover = Gross operating revenues ÷ Total assets
= 9,369 ÷ 11,476 = 0.82
The financial data for the West Tier reportable segment reveals several notable trends over the period from 2019 to 2021.
- Gross Operating Revenues
- There was a moderate decline in gross operating revenues from 2019 to 2020, decreasing from $8,289 million to $8,241 million. However, in 2021, revenues rebounded significantly to $9,369 million, surpassing the 2019 level. This indicates a recovery and growth phase in the most recent year analyzed.
- Total Assets
- Total assets exhibited a considerable increase between 2019 and 2020, rising from $9,720 million to $11,501 million. In 2021, total assets slightly decreased to $11,476 million but remained substantially higher than the 2019 figure. This suggests investment or asset accumulation in 2020 followed by stabilization.
- Segment Asset Turnover
- The segment asset turnover ratio declined from 0.85 in 2019 to 0.72 in 2020, indicating a reduction in the efficiency of asset utilization to generate revenues during this period. In 2021, the ratio improved to 0.82, suggesting a recovery in operational efficiency, although it had not fully returned to the 2019 level.
Overall, the segment experienced an asset base expansion in 2020, accompanied by a temporary dip in both revenues and asset turnover efficiency. By 2021, revenues grew strongly and operational efficiency improved, implying a positive operational turnaround despite the larger asset base. The data reflect challenges followed by a partial recovery phase within this timeframe.
Segment Capital Expenditures to Depreciation
Waste Management Inc., capital expenditures to depreciation by reportable segment
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| East Tier | 0.73 | 0.67 | 0.86 | — | — |
| West Tier | 0.66 | 0.63 | 0.90 | — | — |
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).
- East Tier Capital Expenditure to Depreciation Ratio
- The capital expenditure to depreciation ratio for the East Tier segment was not reported for the years 2017 and 2018. Starting from 2019, the ratio was 0.86, indicating that capital expenditures were slightly lower than depreciation expenses. In 2020, the ratio decreased to 0.67, reflecting a notable reduction in capital spending relative to depreciation. In 2021, the ratio increased slightly to 0.73, suggesting a moderate recovery in capital expenditures but still remaining below the levels of depreciation.
- West Tier Capital Expenditure to Depreciation Ratio
- Similar to the East Tier, the West Tier segment's ratio data is unavailable for 2017 and 2018. In 2019, the ratio stood at 0.90, indicating a capital expenditure level close to depreciation. In 2020, this ratio dropped significantly to 0.63, implying a sharp decline in capital expenditures compared to depreciation. By 2021, the ratio showed a slight improvement, rising to 0.66, though it remained well below the 2019 level.
- Overall Trends and Insights
- Both segments exhibited similar trends over the available data period, with capital expenditure to depreciation ratios initially close to or slightly below 1 in 2019, followed by a noticeable decline in 2020. This decline suggests a reduction in reinvestment relative to asset depreciation during that year, possibly reflecting cautious capital spending or operational adjustments. In 2021, both segments showed some recovery in the ratio, indicating a moderate increase in capital expenditure relative to depreciation, yet the ratios remained below the 2019 levels. The missing data in earlier years limits the ability to analyze longer-term trends prior to 2019.
Segment Capital Expenditures to Depreciation: East Tier
Waste Management Inc.; East Tier; segment capital expenditures to depreciation calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | 708) | 537) | 670) | —) | —) |
| Depreciation and amortization | 970) | 801) | 776) | —) | —) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 0.73 | 0.67 | 0.86 | — | — |
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
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= 708 ÷ 970 = 0.73
- Capital Expenditures
- Capital expenditures demonstrated significant variability within the observed period, with no data reported prior to 2020. In 2020, capital expenditures amounted to $670 million, followed by a decrease to $537 million in 2021, and then an increase to $708 million in 2022. This pattern indicates an initially high investment level, a subsequent reduction, and a rebound in investment activities toward the end of the period.
- Depreciation and Amortization
- Depreciation and amortization expenses showed a consistent upward trajectory over the reported years. Beginning at $776 million in 2020, these expenses rose to $801 million in 2021 and further increased to $970 million in 2022. The steady increase suggests growing asset bases or intensified amortization schedules, reflecting ongoing capital asset usage or acquisition.
- Segment Capital Expenditures to Depreciation Ratio
- This ratio fluctuated between 2020 and 2022, beginning at 0.86 in 2020, decreasing to 0.67 in 2021, and then slightly rising to 0.73 in 2022. The decline in 2021 indicates that capital expenditures were lower relative to depreciation expense, potentially pointing to reduced reinvestment in fixed assets during that year. The subsequent increase in 2022 suggests a partial recovery in investment efforts relative to asset depreciation.
Segment Capital Expenditures to Depreciation: West Tier
Waste Management Inc.; West Tier; segment capital expenditures to depreciation calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | 579) | 465) | 620) | —) | —) |
| Depreciation and amortization | 883) | 738) | 687) | —) | —) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 0.66 | 0.63 | 0.90 | — | — |
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
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= 579 ÷ 883 = 0.66
- Capital Expenditures
- The capital expenditures in the West Tier segment showed an increase from 2019 to 2020, rising from 465 million US dollars to 620 million US dollars. This was followed by a decrease in 2021 to 579 million US dollars, indicating some variability but an overall maintenance of a high investment level during this period.
- Depreciation and Amortization
- Depreciation and amortization expenses have steadily increased year over year from 2019 through 2021. The figures rose from 687 million US dollars in 2019 to 738 million US dollars in 2020, followed by a further increase to 883 million US dollars in 2021. This consistent upward trend suggests aging or expansion of fixed assets along with higher associated depreciation charges over time.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio of capital expenditures to depreciation decreased notably from 0.9 in 2019 to 0.63 in 2020 and slightly increased to 0.66 in 2021. This trend indicates that while capital expenditures remain significant, they are relatively lower in comparison to the rate of depreciation charges. It may imply potential underinvestment relative to asset wear or a strategic shift in asset management within the segment.
Gross operating revenues
Waste Management Inc., gross operating revenues by reportable segment
US$ in millions
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| East Tier | 9,278) | 7,873) | 8,098) | —) | —) |
| West Tier | 9,369) | 8,241) | 8,289) | —) | —) |
| Solid Waste | 18,647) | 16,114) | 16,387) | —) | —) |
| Other | 3,046) | 2,364) | 2,317) | —) | —) |
| Total | 21,693) | 18,478) | 18,704) | —) | —) |
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).
The annual reportable segment gross operating revenues exhibit notable trends across the East Tier, West Tier, Solid Waste, and Other segments over the period from 2020 to 2022.
- East Tier
- The East Tier segment showed a decline in revenue from 8,098 million USD in 2020 to 7,873 million USD in 2021, representing a slight decrease. However, it rebounded noticeably in 2022, reaching 9,278 million USD, indicating a strong recovery and growth beyond the prior peak.
- West Tier
- The West Tier segment's revenues remained relatively stable between 2020 and 2021, with a marginal decrease from 8,289 million USD to 8,241 million USD. In 2022, the segment experienced a significant increase to 9,369 million USD, reflecting robust growth similar to that observed in the East Tier.
- Solid Waste
- The Solid Waste segment's gross operating revenues followed a slightly declining trend from 16,387 million USD in 2020 to 16,114 million USD in 2021. Subsequently, in 2022, there was a pronounced rise to 18,647 million USD, surpassing previous levels and contributing substantially to total revenue growth.
- Other
- The Other segment demonstrated consistent upward movement over the analyzed years, increasing from 2,317 million USD in 2020 to 2,364 million USD in 2021, followed by a significant jump to 3,046 million USD in 2022. This suggests expanded activity or enhanced revenue generation within this segment.
- Total
- The aggregate gross operating revenues across all segments showed a decrease from 18,704 million USD in 2020 to 18,478 million USD in 2021, indicating a minor contraction at the aggregate level. However, the following year, total revenues surged to 21,693 million USD, underscoring a strong recovery and overall growth driven by improvements in each segment, particularly in 2022.
Income from operations
Waste Management Inc., income from operations by reportable segment
US$ in millions
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| East Tier | 2,037) | 1,672) | 1,847) | —) | —) |
| West Tier | 2,103) | 1,800) | 1,934) | —) | —) |
| Solid Waste | 4,140) | 3,472) | 3,781) | —) | —) |
| Other | 34) | (42) | (158) | —) | —) |
| Corporate and Other | (1,209) | (996) | (917) | —) | —) |
| Total | 2,965) | 2,434) | 2,706) | —) | —) |
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).
The data reveals a general upward trend in reportable segment income from operations over the available periods, with some fluctuations in specific segments.
- East Tier
- The East Tier segment experienced growth in income from operations, starting at $1,847 million and rising to $2,037 million by the end of the latest period. Despite a dip to $1,672 million in the second year reported, the segment demonstrated a recovery, surpassing the initial value.
- West Tier
- Similarly, the West Tier segment showed an overall increase, moving from $1,934 million to $2,103 million over the reported periods. This growth also followed a pattern of decline in the middle period before appreciating in the final year.
- Solid Waste
- The Solid Waste segment contributed the largest absolute values, with income fluctuating between $3,472 million and $4,140 million. Although there was a noticeable decline from $3,781 million to $3,472 million, the segment finished the period on a strong upward trajectory.
- Other
- The Other category showed an improving trend, moving from negative values to a positive figure of $34 million. This indicates a reduction in losses or possibly the emergence of new income streams within this segment.
- Corporate and Other
- This segment consistently reported negative income from operations, with losses increasing from -$917 million to -$1,209 million. The worsening performance here suggests rising corporate expenses or other overheads affecting the total profitability.
- Total
- The aggregate income from operations across all segments showed a decline from $2,706 million to $2,434 million before recovering to $2,965 million in the final period. This recovery aligns with the improvements seen in the East Tier, West Tier, Solid Waste, and Other segments, offsetting the increased losses noted in Corporate and Other.
Overall, the company's segment income from operations demonstrated resilience and growth, particularly in the East Tier, West Tier, and Solid Waste segments. The reduction in losses within the Other segment contributed positively, while increasing corporate-level expenses detracted from consolidated performance. The data suggests a focus on operational segments is yielding growth, but attention to corporate overhead management may be warranted to sustain and enhance profitability.
Depreciation and amortization
Waste Management Inc., depreciation and amortization by reportable segment
US$ in millions
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| East Tier | 970) | 801) | 776) | —) | —) |
| West Tier | 883) | 738) | 687) | —) | —) |
| Solid Waste | 1,853) | 1,539) | 1,463) | —) | —) |
| Other | 70) | 87) | 75) | —) | —) |
| Corporate and Other | 76) | 45) | 36) | —) | —) |
| Total | 1,999) | 1,671) | 1,574) | —) | —) |
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).
- Analysis of Annual Depreciation and Amortization Data
-
The data reveals a consistent upward trend in depreciation and amortization expenses across most reportable segments over the three-year period from 2019 to 2021. The East Tier segment demonstrates a steady increase, starting at $776 million in 2019 and rising to $970 million by 2021. This represents a significant growth, indicating ongoing capital investments or asset base expansion in this region.
Similarly, the West Tier segment exhibits a comparable growth pattern, with values increasing from $687 million in 2019 to $883 million in 2021. The rate of increase is consistent year-over-year, which may suggest parallel operational growth or asset acquisition strategies corresponding to those in the East Tier.
The Solid Waste segment, representing the largest share of depreciation and amortization expenses, also shows substantial growth over the period. The expense rises from $1,463 million in 2019 to $1,853 million in 2021, marked by strong increases each year. This trend likely reflects expanded operations, increased capital expenditures, or revaluation of asset lives within this core segment.
In contrast, the Other category demonstrates a less consistent pattern. While the value increased from $75 million in 2019 to $87 million in 2020, it declined to $70 million by 2021. This fluctuation might reflect changes in asset composition or reduced capital investment in smaller or ancillary business areas.
The Corporate and Other segment shows an accelerating rise, beginning at $36 million in 2019 and more than doubling to $76 million in 2021. This sharp increase could signify higher depreciation charges on corporate assets or investments in general infrastructure or administrative facilities.
The total depreciation and amortization expenses align with the segment-level trends, increasing from $1,574 million in 2019 to nearly $2,000 million by the end of 2021. This overall growth underscores a broad expansion in asset base or depreciation rates across the enterprise, with the most pronounced increases in the East and West Tiers and the Solid Waste segment.
Capital expenditures
Waste Management Inc., capital expenditures by reportable segment
US$ in millions
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| East Tier | 708) | 537) | 670) | —) | —) |
| West Tier | 579) | 465) | 620) | —) | —) |
| Solid Waste | 1,287) | 1,002) | 1,290) | —) | —) |
| Other | 181) | 75) | 118) | —) | —) |
| Corporate and Other | 571) | 508) | 407) | —) | —) |
| Total | 2,039) | 1,585) | 1,815) | —) | —) |
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).
The data presents capital expenditures across various segments over a three-year period, from December 31, 2019, to December 31, 2021. Notably, no data is provided for the prior two years.
- East Tier
- Capital expenditures in this segment demonstrate a fluctuating trend. Starting at $670 million in 2019, there was a significant decline to $537 million in 2020, followed by a recovery and growth to $708 million in 2021, exceeding the initial value from 2019.
- West Tier
- Expenditures in the West Tier also exhibit variability. Beginning at $620 million in 2019, there is a decrease to $465 million in 2020, then a rise to $579 million in 2021. Although the 2021 value improves from 2020, it remains below the 2019 peak.
- Solid Waste
- This segment accounts for a majority of the capital expenditure and shows a distinctive pattern. Starting at $1,290 million in 2019, there was a marked reduction to $1,002 million in 2020. However, the figure rebounds strongly to $1,287 million in 2021, almost returning to the 2019 level.
- Other
- The "Other" category reflects smaller-scale but variable expenditures. From $118 million in 2019, spending fell to $75 million in 2020 before increasing substantially to $181 million in 2021. This segment experienced the highest relative growth between 2020 and 2021.
- Corporate and Other
- Capital expenditures here show a steady upward trend over the three years: from $407 million in 2019, increasing to $508 million in 2020, and further to $571 million in 2021. This indicates consistent investment growth in corporate and other activities.
- Total Capital Expenditures
- The overall capital expenditures decreased from $1,815 million in 2019 to $1,585 million in 2020, representing a decline likely influenced by external factors during that period. Subsequently, there was a significant increase to $2,039 million in 2021, surpassing the 2019 total and signaling a strong recovery and reinvestment phase.
Total assets
Waste Management Inc., total assets by reportable segment
US$ in millions
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| East Tier | 14,269) | 14,274) | 11,600) | —) | —) |
| West Tier | 11,476) | 11,501) | 9,720) | —) | —) |
| Solid Waste | 25,745) | 25,775) | 21,320) | —) | —) |
| Other | 1,275) | 2,064) | 1,648) | —) | —) |
| Corporate and Other | 2,372) | 1,810) | 5,042) | —) | —) |
| Total | 29,392) | 29,649) | 28,010) | —) | —) |
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).
- East Tier
- The East Tier segment reported no data until 2020, when total assets amounted to $11,600 million. This figure increased significantly by 23.07% to $14,274 million in 2021, followed by a marginal decline of 0.03% to $14,269 million in 2022. Overall, the segment shows strong growth initially and then stabilizes.
- West Tier
- Similar to the East Tier, the West Tier segment's asset figures appear starting in 2020 at $9,720 million. This was followed by a 18.32% increase to $11,501 million in 2021, then a slight decline of 0.22% to $11,476 million in 2022. This pattern indicates a robust growth phase followed by minor stabilization or plateauing.
- Solid Waste
- The Solid Waste segment displays a consistent upward trend from 2020 to 2021, growing by 20.94% from $21,320 million to $25,775 million. However, in 2022, asset levels slightly decreased by 0.12% to $25,745 million. This reflects an initial expansion period followed by a minimal contraction or adjustment.
- Other
- The 'Other' category shows an increase in assets from $1,648 million in 2020 to $2,064 million in 2021, representing a 25.23% rise. Contrarily, the segment experienced a sharp decline of approximately 38.26% in 2022, falling to $1,275 million. This volatility suggests fluctuating investment or divestment activities within this segment.
- Corporate and Other
- This segment recorded a significant decrease of 64.07% in assets from $5,042 million in 2020 to $1,810 million in 2021. However, the following year showed a rebound, with assets increasing by 31.04% to $2,372 million in 2022. The pattern indicates possible strategic realignment or operational restructuring affecting asset allocation.
- Total
- Total assets rose from $28,010 million in 2020 to $29,649 million in 2021, an increase of 5.90%. In 2022, total assets slightly decreased by 0.87% to $29,392 million. This overall picture suggests balanced growth followed by a shallow decline, reflecting the mixed performance of the various segments.