Waste Management Inc (WM)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,804,000 | 3,551,000 | 3,069,000 | 3,540,000 | 6,209,000 |
| Total current liabilities | US$ in thousands | 4,226,000 | 4,394,000 | 4,082,000 | 3,553,000 | 3,144,000 |
| Current ratio | 0.90 | 0.81 | 0.75 | 1.00 | 1.97 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,804,000K ÷ $4,226,000K
= 0.90
The current ratio of Waste Management, Inc. has fluctuated over the past five years. In 2019, the current ratio was at its highest at 1.97, indicating a strong ability to meet its short-term obligations with current assets. However, there has been a significant decline in the current ratio since then, with the ratio dropping to 1.00 in 2020 and then falling further to 0.75 in 2021, suggesting potential liquidity challenges.
The trend continued in 2022 when the current ratio decreased to 0.81, indicating that the company may have had difficulties in meeting its short-term obligations with its current assets. In 2023, the current ratio further declined to 0.90, although it improved slightly compared to the previous year.
Overall, the decreasing trend in the current ratio of Waste Management, Inc. from 2019 to 2023 raises concerns about the company's liquidity position and ability to meet its short-term financial obligations with its current assets. It is important for stakeholders to closely monitor this trend to assess the company's financial health and management of working capital.
Peer comparison
Dec 31, 2023