Waste Management Inc (WM)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 414,000 | 458,000 | 351,000 | 118,000 | 553,000 |
| Short-term investments | US$ in thousands | 200,000 | — | — | — | 314,000 |
| Receivables | US$ in thousands | 3,687,000 | 2,870,000 | 2,752,000 | 2,546,000 | 2,624,000 |
| Total current liabilities | US$ in thousands | 6,258,000 | 4,226,000 | 4,394,000 | 4,082,000 | 3,553,000 |
| Quick ratio | 0.69 | 0.79 | 0.71 | 0.65 | 0.98 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($414,000K
+ $200,000K
+ $3,687,000K)
÷ $6,258,000K
= 0.69
The quick ratio of Waste Management Inc, a key liquidity metric, has shown some fluctuations over the past five years. As of December 31, 2020, the quick ratio was 0.98, indicating that the company had sufficient liquid assets to cover its current liabilities. However, by December 31, 2021, the quick ratio had declined to 0.65, suggesting a potential strain on the company's ability to meet its short-term obligations with its most liquid assets.
Subsequently, the quick ratio improved to 0.71 by December 31, 2022, signaling a slight strengthening of liquidity position. The ratio further increased to 0.79 by December 31, 2023, showing a continued positive trend in the company's ability to cover immediate liabilities with its quick assets.
However, by December 31, 2024, the quick ratio fell to 0.69, indicating a slight decline in liquidity compared to the previous year. In conclusion, while there have been fluctuations in the quick ratio of Waste Management Inc over the years, the company generally maintained a level of liquidity to manage its short-term obligations, albeit with some variations in performance.
Peer comparison
Dec 31, 2024