Waste Management Inc (WM)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 24.18% | 24.72% | 23.65% | 22.75% | 23.69% |
| Operating profit margin | 17.98% | 17.44% | 17.09% | 16.56% | 18.15% |
| Pretax margin | 15.34% | 15.11% | 13.53% | 12.88% | 14.11% |
| Net profit margin | 11.59% | 11.60% | 10.47% | 10.18% | 11.20% |
Waste Management, Inc. has shown consistent profitability over the past five years, as evidenced by its gross profit margin, operating profit margin, pretax margin, and net profit margin.
The company's gross profit margin has remained relatively stable, ranging from 37.59% to 38.62%, indicating that Waste Management has effectively managed its cost of goods sold and maintained strong pricing power in its operations.
The operating profit margin has shown an increasing trend over the period, from 15.84% in 2020 to 18.42% in 2023, signaling improvements in the company's operating efficiency and cost management.
The pretax margin has also shown a consistent increase, reflecting Waste Management's ability to control its operating expenses and generate higher levels of income before taxes.
Lastly, the net profit margin, representing the company's bottom line profitability, has also exhibited a positive trend, ranging from 9.83% to 11.36%. This indicates that Waste Management has been successful in converting its revenues into net income after accounting for all expenses, including interest and taxes.
Overall, Waste Management, Inc. has demonstrated strong profitability ratios over the years, reflecting efficient cost management and effective revenue generation strategies.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.89% | 10.73% | 10.19% | 8.29% | 9.75% |
| Return on assets (ROA) | 7.02% | 7.13% | 6.24% | 5.10% | 6.02% |
| Return on total capital | 51.79% | 49.13% | 41.62% | 32.66% | 38.29% |
| Return on equity (ROE) | 33.38% | 32.68% | 25.49% | 20.08% | 23.63% |
Waste Management, Inc. has shown a consistent improvement in its profitability ratios over the past five years. The Operating return on assets (Operating ROA) has increased from 9.73% in 2019 to 11.46% in 2023, indicating efficient utilization of assets to generate operating income. This demonstrates the company's ability to generate profit from its core operations.
The Return on assets (ROA) measures the overall efficiency of asset utilization in generating profits. Waste Management, Inc.'s ROA has shown a positive trend, increasing from 6.02% in 2019 to 7.02% in 2023. This indicates that the company is effectively managing its assets to generate earnings for its shareholders.
Return on total capital reflects the company's overall profitability in relation to the total capital employed. Waste Management, Inc. has seen a steady increase in this ratio, from 13.12% in 2019 to 16.27% in 2023. This suggests that the company is able to generate higher returns for its investors based on the total capital invested.
Lastly, the Return on equity (ROE) measures the efficiency of utilizing shareholders' equity to generate profits. Waste Management, Inc.'s ROE has shown continuous improvement, increasing from 23.63% in 2019 to 33.38% in 2023. This indicates that the company is effectively leveraging its equity to generate higher returns for its shareholders.
Overall, Waste Management, Inc.'s profitability ratios reflect a positive trend, demonstrating the company's ability to efficiently manage its assets, generate profits, and provide returns to its shareholders.