Waste Management Inc (WM)
Receivables 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 |
| Receivables | US$ in thousands | 3,687,000 | 3,125,000 | 2,980,000 | 2,685,000 | 2,870,000 | 2,917,000 | 2,846,000 | 2,608,000 | 2,752,000 | 2,676,000 | 2,665,000 | 2,479,000 | 2,546,000 | 2,669,000 | 2,645,000 | 2,427,000 | 2,624,000 | 2,217,000 | 2,107,000 | 2,662,000 |
| 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 |
December 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $22,102,000K ÷ $3,687,000K
= 5.99
The receivables turnover ratio of Waste Management Inc has shown some fluctuations over the years, indicating varying efficiency in collecting receivables. The trend reveals an overall improvement in receivables turnover from 5.79 on March 31, 2020, to 7.00 on June 30, 2022, though with some ups and downs in between.
The highest receivables turnover ratio was observed on March 31, 2024, at 7.49, suggesting that Waste Management Inc was able to convert its accounts receivable into cash more rapidly during that period. Conversely, the lowest turnover ratio of 5.60 was recorded on December 31, 2020, indicating a slower collection of receivables during that period.
Overall, Waste Management Inc appears to have maintained a relatively healthy level of receivables turnover, staying above 5.00 throughout the period under review. It is essential for the company to consistently monitor and manage its receivables turnover to ensure efficient cash flow management and timely collection of outstanding receivables.
Peer comparison
Dec 31, 2024