Waste Management Inc (WM)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 27.33% | 24.18% | 24.72% | 23.65% | 22.75% |
| Operating profit margin | 18.34% | 17.98% | 17.44% | 17.09% | 16.56% |
| Pretax margin | 15.61% | 15.34% | 15.11% | 13.53% | 12.88% |
| Net profit margin | 12.39% | 11.59% | 11.60% | 10.47% | 10.18% |
Based on the provided data, Waste Management Inc's profitability ratios have shown a positive trend over the years.
1. Gross Profit Margin:
- Waste Management Inc's gross profit margin has been steadily increasing from 22.75% in December 31, 2020, to 27.33% in December 31, 2024. This indicates the company's ability to effectively control its production costs and generate more profit from its core operations.
2. Operating Profit Margin:
- The company's operating profit margin has also shown an upward trend, rising from 16.56% in December 31, 2020, to 18.34% in December 31, 2024. This suggests that Waste Management Inc has been efficient in managing its operating expenses while increasing its profitability.
3. Pretax Margin:
- Waste Management Inc's pretax margin has exhibited a consistent growth pattern, climbing from 12.88% in December 31, 2020, to 15.61% in December 31, 2024. This signifies the company's ability to generate higher profits before accounting for taxes over the years.
4. Net Profit Margin:
- The net profit margin of Waste Management Inc has also improved gradually, increasing from 10.18% in December 31, 2020, to 12.39% in December 31, 2024. This indicates that the company has been successful in effectively managing its overall expenses and boosting its bottom line profitability.
In conclusion, Waste Management Inc has demonstrated a positive trend in its profitability ratios over the years, showcasing efficient cost management and revenue generation strategies that have contributed to its overall financial performance and growth.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.12% | 10.89% | 10.73% | 10.19% | 8.29% |
| Return on assets (ROA) | 6.16% | 7.02% | 7.13% | 6.24% | 5.10% |
| Return on total capital | 49.24% | 51.79% | 49.13% | 41.62% | 32.66% |
| Return on equity (ROE) | 33.28% | 33.38% | 32.68% | 25.49% | 20.08% |
Waste Management Inc's profitability ratios show a positive trend over the years, indicating an improvement in the company's ability to generate profits relative to its assets and capital.
- Operating return on assets (Operating ROA) increased from 8.29% in 2020 to 10.89% in 2023, with a slight decrease to 9.12% in 2024. This ratio measures the company's operating income generated per dollar of total assets, reflecting the efficiency of the company's operations.
- Return on assets (ROA) also showed a steady increase from 5.10% in 2020 to 7.02% in 2023 before declining slightly to 6.16% in 2024. ROA indicates the overall profitability of the company's assets in generating earnings.
- Return on total capital followed a similar upward trend, rising from 32.66% in 2020 to 51.79% in 2023, then falling to 49.24% in 2024. This ratio evaluates the company's ability to generate profits from both equity and debt sources.
- Return on equity (ROE) displayed consistent growth, climbing from 20.08% in 2020 to 33.38% in 2023, slightly decreasing to 33.28% in 2024. ROE measures how effectively the company is utilizing shareholders' equity to generate profits.
Overall, Waste Management Inc's profitability ratios suggest that the company has been successful in enhancing its profitability and generating value for its stakeholders over the years.