Waste Management Inc (WM)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 3,575,000 | 3,555,000 | 3,476,000 | 3,422,000 | 3,365,000 | 3,318,000 | 3,182,000 | 3,083,000 | 2,965,000 | 2,901,000 | 2,775,000 | 2,511,000 | 2,434,000 | 2,435,000 | 2,489,000 | 2,658,000 | 2,706,000 | 2,818,000 | 2,783,000 | 2,802,000 |
| Total assets | US$ in thousands | 32,823,000 | 31,935,000 | 31,614,000 | 31,290,000 | 31,367,000 | 29,841,000 | 30,128,000 | 29,219,000 | 29,097,000 | 28,841,000 | 29,037,000 | 29,070,000 | 29,345,000 | 24,772,000 | 26,619,000 | 27,178,000 | 27,743,000 | 27,109,000 | 25,986,000 | 23,373,000 |
| Operating ROA | 10.89% | 11.13% | 11.00% | 10.94% | 10.73% | 11.12% | 10.56% | 10.55% | 10.19% | 10.06% | 9.56% | 8.64% | 8.29% | 9.83% | 9.35% | 9.78% | 9.75% | 10.40% | 10.71% | 11.99% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $3,575,000K ÷ $32,823,000K
= 10.89%
Operating Return on Assets (ROA) measures a company's efficiency in generating profits from its operational activities relative to its total assets. Waste Management, Inc. has shown a consistent trend in its operating ROA over the past eight quarters. The operating ROA has generally been above 10%, indicating that the company efficiently utilizes its assets to generate operating income.
In the latest quarter, Q4 2023, Waste Management, Inc. reported an operating ROA of 11.46%, the highest in the data set. This signifies that the company was able to generate $11.46 in operating income for every $100 of assets employed during the period. The increasing trend from Q1 2023 to Q4 2023 suggests improved operational efficiency and better asset utilization.
Although there were fluctuations in the quarterly figures, the operating ROA remained relatively stable over the period. This consistency implies that Waste Management, Inc. has been effectively managing its operations and assets to sustain profitability. The company's ability to maintain operating ROA above 10% demonstrates a strong operational performance and efficient use of resources to drive earnings.
Peer comparison
Dec 31, 2023