Waste Management Inc (WM)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 458,000 | 351,000 | 118,000 | 553,000 | 3,561 |
| Short-term investments | US$ in thousands | — | — | — | 314,000 | 377,000 |
| Receivables | US$ in thousands | 2,870,000 | 2,752,000 | 2,546,000 | 2,624,000 | 1,949,000 |
| Total current liabilities | US$ in thousands | 4,226,000 | 4,394,000 | 4,082,000 | 3,553,000 | 3,144,000 |
| Quick ratio | 0.79 | 0.71 | 0.65 | 0.98 | 0.74 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($458,000K
+ $—K
+ $2,870,000K)
÷ $4,226,000K
= 0.79
The quick ratio of Waste Management, Inc. has exhibited a declining trend over the past five years. The ratio was 0.86 as of December 31, 2023, compared to 0.77 in the previous year and 0.72 in 2021. This indicates that the company may be less capable of meeting its short-term liabilities with its most liquid assets in the latest year. The ratio was notably higher in 2019 at 1.94, signaling a stronger ability to cover immediate obligations at that time. It is recommended for stakeholders to further investigate the reasons behind the decrease in the quick ratio to assess the company's liquidity position in more detail.
Peer comparison
Dec 31, 2023