Waste Management Inc (WM)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 414,000 | 614,000 | 172,000 | 322,000 | 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 |
| Short-term investments | US$ in thousands | — | — | 778,000 | — | — | — | — | — | — | — | — | — | — | 402,000 | 417,000 | 426,000 | 314,000 | 425,000 | — | — |
| Total current liabilities | US$ in thousands | 6,258,000 | 4,779,000 | 4,136,000 | 3,949,000 | 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 |
| Cash ratio | 0.07 | 0.13 | 0.23 | 0.08 | 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 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($414,000K
+ $—K)
÷ $6,258,000K
= 0.07
The cash ratio of Waste Management Inc has shown fluctuations over the periods analyzed. The cash ratio calculates the proportion of a company's current assets held in cash and cash equivalents compared to its current liabilities. A higher cash ratio indicates a stronger ability to cover short-term liabilities using cash on hand.
Waste Management Inc's cash ratio started at 1.02 on March 31, 2020. This suggests the company had more than enough cash to cover its short-term obligations at that time. However, the ratio decreased to 0.03 by December 31, 2021, indicating a significant decline in the company's ability to cover its current liabilities with cash reserves. The cash ratio improved slightly by June 30, 2022, but decreased again in the following periods.
Overall, the downward trend in Waste Management Inc's cash ratio from 2020 to 2024 may indicate challenges in managing liquidity or a shifting strategy regarding cash allocation. Investors and analysts may closely monitor these fluctuations to assess the company's ability to meet financial obligations and its overall financial health.
Peer comparison
Dec 31, 2024