Waste Management Inc (WM)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 27.45% | 25.60% | 25.44% | 25.09% | 24.42% | 25.57% | 25.25% | 25.02% | 25.01% | 24.94% | 24.66% | 23.89% | 23.91% | 23.18% | 22.94% | 23.14% | 22.65% | 45.21% | 45.30% | 44.98% |
| Operating profit margin | 18.38% | 18.88% | 18.78% | 18.72% | 18.01% | 18.00% | 17.71% | 17.52% | 17.44% | 17.40% | 17.06% | 17.24% | 17.10% | 17.44% | 17.59% | 16.65% | 16.56% | 16.29% | 16.48% | 17.25% |
| Pretax margin | 15.65% | 16.47% | 16.20% | 16.01% | 15.36% | 15.31% | 15.18% | 15.07% | 15.11% | 15.29% | 14.97% | 13.83% | 13.54% | 13.54% | 13.08% | 13.28% | 12.88% | 12.56% | 13.08% | 13.48% |
| Net profit margin | 12.42% | 12.69% | 12.47% | 12.32% | 11.60% | 11.70% | 11.65% | 11.56% | 11.60% | 11.77% | 11.49% | 10.67% | 10.47% | 10.51% | 10.14% | 10.32% | 10.18% | 10.07% | 10.66% | 10.93% |
Waste Management Inc's profitability ratios have shown mixed trends over the years. The gross profit margin has generally been stable, with a slight increase from 44.98% in March 2020 to 27.45% in December 2024, indicating the company's ability to generate profit from its core business operations.
The operating profit margin has fluctuated but overall has shown an upward trend, increasing from 17.25% in March 2020 to 18.38% in December 2024. This suggests that Waste Management has been able to effectively manage its operating expenses while improving operational efficiency.
The pretax margin has shown a steady increase over the years, from 13.48% in March 2020 to 15.65% in December 2024. This indicates that the company has been able to increase its profitability before accounting for taxes, reflecting sound financial management and operational performance.
The net profit margin has also shown a positive trend, increasing from 10.93% in March 2020 to 12.42% in December 2024. This shows that Waste Management has been able to improve its bottom line profitability, indicating effective cost management and revenue generation strategies.
Overall, Waste Management Inc's profitability ratios demonstrate a combination of stability and improvement in profitability metrics over the years, reflecting the company's ability to generate profits and manage costs effectively.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.12% | 11.31% | 11.27% | 11.53% | 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% |
| Return on assets (ROA) | 6.16% | 7.60% | 7.48% | 7.59% | 7.02% | 7.23% | 7.23% | 7.22% | 7.13% | 7.52% | 7.12% | 6.53% | 6.24% | 6.06% | 5.51% | 5.35% | 5.10% | 6.08% | 6.05% | 6.20% |
| Return on total capital | 49.24% | 49.24% | 51.37% | 53.18% | 51.79% | 51.15% | 50.31% | 50.37% | 49.13% | 47.33% | 44.26% | 43.16% | 41.62% | 40.45% | 37.74% | 33.81% | 32.66% | 34.03% | 36.12% | 39.42% |
| Return on equity (ROE) | 33.28% | 33.10% | 34.12% | 35.00% | 33.38% | 33.24% | 33.09% | 33.24% | 32.68% | 32.03% | 29.82% | 26.71% | 25.49% | 24.37% | 21.76% | 20.95% | 20.08% | 21.03% | 23.36% | 24.97% |
Waste Management Inc's profitability ratios have been generally positive and improving over the periods analyzed.
1. Operating Return on Assets (Operating ROA): This ratio measures the operational efficiency in generating profits from its assets. Waste Management Inc's Operating ROA has shown a consistent increase from 9.78% in March 2020 to 11.31% in September 2024, indicating effective asset utilization and operational performance.
2. Return on Assets (ROA): ROA reflects the company's ability to generate profits from its total assets. Waste Management Inc's ROA has shown a gradual improvement, increasing from 6.20% in March 2020 to 6.16% in December 2024. Although there were fluctuations, the trend is positive, indicating efficient asset management.
3. Return on Total Capital: This ratio measures the profitability concerning the total capital employed. Waste Management Inc's Return on Total Capital has been consistently increasing, from 39.42% in March 2020 to 49.24% in December 2024, showing the company's ability to generate higher returns relative to the total capital invested.
4. Return on Equity (ROE): ROE indicates the profitability generated for the shareholders. Waste Management Inc's ROE has been on an upward trajectory, rising from 24.97% in March 2020 to 33.28% in December 2024. This signifies the company's strong performance in generating returns for its equity holders.
Overall, Waste Management Inc's profitability ratios demonstrate a positive trend, indicating sound financial health and effective management of assets and capital, leading to increased returns for both the company and its shareholders.