Waste Management Inc (WM)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 19,878,000 | 19,294,000 | 17,348,000 | 14,701,000 | 14,912,000 |
| Property, plant and equipment | US$ in thousands | 39,401,000 | 37,018,000 | 34,592,000 | 33,099,000 | 12,893,000 |
| Fixed asset turnover | 0.50 | 0.52 | 0.50 | 0.44 | 1.16 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $19,878,000K ÷ $39,401,000K
= 0.50
The fixed asset turnover ratio for Waste Management, Inc. has fluctuated over the past five years. In 2023, it decreased slightly to 1.20 from 1.25 in 2022, indicating that the company generated $1.20 in revenue for every dollar invested in fixed assets during the year. This suggests a marginal decline in the efficiency of utilizing fixed assets to generate sales compared to the previous year.
However, when compared to 2021 and 2019 where the ratios were 1.24 and 1.20 respectively, the company's fixed asset turnover remained relatively stable in 2023. Furthermore, in 2020, the ratio was lower at 1.08, indicating a decrease in efficiency in generating revenue from fixed assets during that year.
Overall, although there was a slight dip in 2023, Waste Management, Inc. has generally maintained a consistent level of efficiency in utilizing its fixed assets to generate revenue over the five-year period.
Peer comparison
Dec 31, 2023