Waste Management Inc (WM)
Cash ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 458,000 | 150,000 | 144,000 | 257,000 | 351,000 | 137,000 | 894,000 | 155,000 | 118,000 | 116,000 | 148,000 | 476,000 | 553,000 | 703,000 | 2,663,000 | 3,125,000 | 3,561 | 2,915,000 | 2,250,000 | 57,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | 402,000 | 417,000 | 426,000 | 314,000 | 425,000 | — | — | 377,000 | — | — | — |
| Total current liabilities | US$ in thousands | 4,226,000 | 4,218,000 | 4,251,000 | 3,856,000 | 4,394,000 | 3,834,000 | 3,722,000 | 3,806,000 | 4,082,000 | 4,102,000 | 3,683,000 | 3,285,000 | 3,553,000 | 2,806,000 | 5,772,000 | 3,070,000 | 3,144,000 | 2,989,000 | 2,846,000 | 3,612,000 |
| Cash ratio | 0.11 | 0.04 | 0.03 | 0.07 | 0.08 | 0.04 | 0.24 | 0.04 | 0.03 | 0.13 | 0.15 | 0.27 | 0.24 | 0.40 | 0.46 | 1.02 | 0.12 | 0.98 | 0.79 | 0.02 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($458,000K
+ $—K)
÷ $4,226,000K
= 0.11
The cash ratio of Waste Management, Inc. measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position.
Looking at the trend of Waste Management's cash ratio over the past eight quarters, we observe fluctuations. In Q4 2023, the cash ratio was 0.18, suggesting that for every dollar of current liabilities, the company had $0.18 in cash and cash equivalents, showing some improvement from the previous quarter.
However, the cash ratio was at its lowest in Q3 2023 at 0.11. This means that the company had lower cash reserves relative to its short-term obligations during that period.
In Q2 2023 and Q1 2023, the cash ratio remained at 0.11, indicating consistency in the company's liquidity position during that period.
The cash ratio was at its highest in Q2 2022, at 0.31, which displays a strong ability to meet short-term obligations with cash on hand during that quarter.
Overall, Waste Management's cash ratio has shown fluctuations, with some quarters indicating stronger liquidity positions than others. It would be essential for the company to maintain a healthy cash ratio to ensure it can meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2023