Waste Management Inc (WM)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	77.84	84.12	83.12	79.75	86.74	83.98	86.28	86.14	88.22	90.00	88.40	91.36	97.74	96.81	96.49	93.49	91.66	70.00	70.03	73.08
Receivables turnover	5.99	6.66	6.85	7.49	6.92	6.77	6.89	7.49	7.01	7.12	7.00	7.21	6.81	6.23	5.97	6.21	5.60	6.74	7.17	5.79
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
Working capital turnover	—	—	67.33	—	—	—	—	—	—	—	70.40	—	—	—	—	359.12	—	27.13	—	6.01

1. Inventory Turnover:
- Waste Management Inc's inventory turnover ratio has shown a generally increasing trend from March 31, 2020, to December 31, 2024, indicating that the company is selling through its inventory more quickly.
- The ratio peaked at 97.74 on December 31, 2021, but slightly decreased to 77.84 by December 31, 2024.

2. Receivables Turnover:
- The receivables turnover ratio for Waste Management Inc fluctuated but remained relatively stable over the analyzed period.
- The company collected receivables efficiently with the ratio peaking at 7.49 on March 31, 2024.

3. Payables Turnover:
- Waste Management Inc's payables turnover ratio has varied but with a general decreasing trend from March 31, 2020, to December 31, 2024, indicating a longer time taken to pay suppliers.
- The ratio ranged from 10.17 on June 30, 2022, to 7.84 on December 31, 2024.

4. Working Capital Turnover:
- Waste Management Inc's working capital turnover ratio fluctuated significantly, with substantial gaps where data was not available.
- Notably, the ratio was extremely high at 359.12 on March 31, 2021, likely due to changes in working capital during that period.

Overall, analyzing these activity ratios provides insights into Waste Management Inc's inventory management, accounts receivable collection efficiency, payables payment trends, and the utilization of working capital over the studied period.

Average number of days

		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
Days of inventory on hand (DOH)	days	4.69	4.34	4.39	4.58	4.21	4.35	4.23	4.24	4.14	4.06	4.13	4.00	3.73	3.77	3.78	3.90	3.98	5.21	5.21	4.99
Days of sales outstanding (DSO)	days	60.89	54.82	53.32	48.70	52.76	53.92	52.94	48.74	52.06	51.23	52.14	50.59	53.59	58.57	61.19	58.73	65.18	54.13	50.91	63.07
Number of days of payables	days	46.57	43.69	42.83	39.16	41.57	43.17	40.46	37.64	44.55	37.98	35.89	37.11	38.04	41.87	41.82	38.16	36.00	39.40	39.93	44.39

Waste Management Inc's activity ratios reflect its efficiency in managing its inventory, collecting receivables, and paying its payables.

1. Days of Inventory on Hand (DOH): Waste Management's DOH has been fluctuating over the years but generally staying within a range of 3.73 to 5.21 days. A lower DOH indicates efficient inventory management, and Waste Management has shown a decreasing trend in its DOH from 2021 to 2024, suggesting improved efficiency in managing its inventory levels.

2. Days of Sales Outstanding (DSO): Waste Management's DSO measures the average number of days the company takes to collect payment after a sale is made. The trend in DSO has varied, ranging from 48.70 to 65.18 days. A lower DSO is preferable, as it indicates faster collection of receivables. Waste Management has shown fluctuations in its DSO, with a decreasing trend observed from 2021 to 2024, indicating enhanced effectiveness in collecting payments from customers.

3. Number of Days of Payables: Waste Management's days of payables indicate the average number of days it takes the company to pay its suppliers. Waste Management has maintained its payables within a range of 35.89 to 46.57 days. A higher number of days of payables suggests that the company is taking longer to pay its suppliers, potentially improving cash flow. Waste Management has shown variability in its payables days, with fluctuations observed over the years.

In conclusion, Waste Management Inc's activity ratios reflect a mix of efficiency in managing its inventory, collecting receivables, and paying its payables. The company has shown improvements in managing its inventory and collecting receivables, while its payables days have varied, impacting its overall working capital management.

Long-term

	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
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
Total asset turnover	0.50	0.60	0.60	0.62	0.60	0.62	0.62	0.62	0.62	0.64	0.62	0.61	0.60	0.58	0.54	0.52	0.50	0.60	0.57	0.57

The fixed asset turnover ratio for Waste Management Inc has been relatively stable over the analyzed period, fluctuating between 0.44 and 0.53. This indicates that the company's ability to generate revenue from its fixed assets has remained somewhat consistent.

On the other hand, the total asset turnover ratio has shown more variability, ranging from 0.50 to 0.64. This ratio measures how efficiently the company is utilizing all its assets to generate sales. The trend suggests some fluctuations in the company's overall asset utilization efficiency over time.

Overall, the analysis of the long-term activity ratios for Waste Management Inc indicates that the company's efficiency in generating revenue from its total assets has shown some variability, while its performance in generating revenue from fixed assets has remained relatively stable over the analyzed period.