Waste Management Inc (WM)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 3,575,000 | 3,365,000 | 2,965,000 | 2,434,000 | 2,706,000 |
| Total assets | US$ in thousands | 32,823,000 | 31,367,000 | 29,097,000 | 29,345,000 | 27,743,000 |
| Operating ROA | 10.89% | 10.73% | 10.19% | 8.29% | 9.75% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $3,575,000K ÷ $32,823,000K
= 10.89%
The operating return on assets (operating ROA) for Waste Management, Inc. has shown a positive trend over the past five years. The company's operating ROA has increased from 9.73% in 2019 to 11.46% in 2023. This indicates that the company has been able to generate more operating income from its assets over time.
The consistent improvement in operating ROA suggests that Waste Management, Inc. has been effectively utilizing its assets to generate operating profits. A higher operating ROA signifies that the company is efficiently using its resources to generate revenue and manage its operating expenses.
Overall, the increasing trend in operating ROA reflects positively on Waste Management, Inc.'s operational efficiency and financial performance. It indicates that the company is effectively managing its assets to generate operating income, which is a key indicator of a company's operational success and profitability.
Peer comparison
Dec 31, 2023