Waste Management Inc (WM)
Fixed asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 22,102,000 | 20,806,000 | 20,400,000 | 20,122,000 | 19,855,000 | 19,745,000 | 19,622,000 | 19,530,000 | 19,293,000 | 19,066,000 | 18,656,000 | 17,885,000 | 17,341,000 | 16,634,000 | 15,778,000 | 15,083,000 | 14,694,000 | 14,948,000 | 15,105,000 | 15,406,000 |
| Property, plant and equipment | US$ in thousands | 42,660,000 | 41,551,000 | 40,730,000 | 40,188,000 | 39,401,000 | 38,931,000 | 38,317,000 | 37,732,000 | 37,018,000 | 36,180,000 | 35,509,000 | 35,216,000 | 34,592,000 | 34,434,000 | 34,105,000 | 33,685,000 | 33,099,000 | 32,112,000 | 12,917,000 | 12,900,000 |
| Fixed asset turnover | 0.52 | 0.50 | 0.50 | 0.50 | 0.50 | 0.51 | 0.51 | 0.52 | 0.52 | 0.53 | 0.53 | 0.51 | 0.50 | 0.48 | 0.46 | 0.45 | 0.44 | 0.47 | 1.17 | 1.19 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $22,102,000K ÷ $42,660,000K
= 0.52
The fixed asset turnover ratio for Waste Management Inc has shown fluctuation over the period from March 31, 2020, to December 31, 2024, ranging from a low of 0.44 to a high of 1.19. This ratio measures the efficiency of the company in generating revenue from its investment in fixed assets.
Generally, a higher fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate sales. Conversely, a lower ratio may suggest that the company is not efficiently using its fixed assets to generate revenue.
In the case of Waste Management Inc, the ratio has generally been on a downward trend from 2020 to 2022, before stabilizing and slightly increasing towards the end of 2024. This may imply varying levels of efficiency in utilizing fixed assets over the years, possibly due to changes in operating strategies, capital expenditures, or business conditions.
It would be advisable for the company to further analyze the factors contributing to the fluctuations in the fixed asset turnover ratio to identify areas for improvement in asset utilization and revenue generation.
Peer comparison
Dec 31, 2024
See also:
Waste Management Inc Net Fixed Asset Turnover (Quarterly Data)