Waste Management Inc (WM)
Payables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 16,036,000 | 15,479,000 | 15,211,000 | 15,073,000 | 15,006,000 | 14,696,000 | 14,668,000 | 14,643,000 | 14,468,000 | 14,310,000 | 14,056,000 | 13,612,000 | 13,195,000 | 12,779,000 | 12,158,000 | 11,593,000 | 11,366,000 | 8,190,000 | 8,263,000 | 8,477,000 |
| Payables | US$ in thousands | 2,046,000 | 1,853,000 | 1,785,000 | 1,617,000 | 1,709,000 | 1,738,000 | 1,626,000 | 1,510,000 | 1,766,000 | 1,489,000 | 1,382,000 | 1,384,000 | 1,375,000 | 1,466,000 | 1,393,000 | 1,212,000 | 1,121,000 | 884,000 | 904,000 | 1,031,000 |
| Payables turnover | 7.84 | 8.35 | 8.52 | 9.32 | 8.78 | 8.46 | 9.02 | 9.70 | 8.19 | 9.61 | 10.17 | 9.84 | 9.60 | 8.72 | 8.73 | 9.57 | 10.14 | 9.26 | 9.14 | 8.22 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $16,036,000K ÷ $2,046,000K
= 7.84
The payables turnover ratio of Waste Management Inc, calculated as purchases divided by average accounts payable, has exhibited some fluctuations over the years. The ratio ranged from a low of 7.84 on December 31, 2024, to a high of 10.17 on June 30, 2022.
Overall, Waste Management Inc's payables turnover ratio has shown a general upward trend from 2020 to 2022, with an average value in this period of around 9.43. However, in the following years, the ratio experienced some volatility, dipping to 7.84 by the end of 2024.
This indicates that the company has been managing its accounts payable effectively, on average, for the given time period. A higher turnover ratio generally implies that the company is paying off its suppliers more frequently within a year, which could be a sign of efficient management of trade credit and potential good relationships with suppliers.
It would be recommended for Waste Management Inc to monitor this ratio closely to ensure that the level of payables turnover remains within an optimal range for the company's operations.
Peer comparison
Dec 31, 2024