Waste Management Inc (WM)
Total 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 |
| Total assets | US$ in thousands | 32,823,000 | 31,367,000 | 29,097,000 | 29,345,000 | 27,743,000 |
| Total asset turnover | 0.61 | 0.62 | 0.60 | 0.50 | 0.54 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $19,878,000K ÷ $32,823,000K
= 0.61
The total asset turnover of Waste Management, Inc. has shown stability over the past five years, ranging from 0.52 to 0.63. This ratio indicates the company's ability to generate sales from its asset base. A higher total asset turnover is generally preferred as it suggests that the company is efficiently utilizing its assets to generate revenue.
Waste Management's total asset turnover ratio of around 0.62 to 0.63 in recent years indicates that for every dollar of assets held by the company, it generates approximately $0.62 to $0.63 in sales. This implies that Waste Management has been effectively utilizing its assets to generate revenue consistently.
The slight fluctuations in the total asset turnover ratio suggest that Waste Management has been able to maintain a relatively stable level of asset efficiency over the years. Overall, the company's total asset turnover reflects a satisfactory level of operational efficiency in utilizing its assets to drive revenue generation.
Peer comparison
Dec 31, 2023