Waste Management Inc (WM)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,304,000 | 2,238,000 | 1,816,000 | 1,496,000 | 1,670,000 |
| Total stockholders’ equity | US$ in thousands | 6,903,000 | 6,849,000 | 7,124,000 | 7,452,000 | 7,068,000 |
| ROE | 33.38% | 32.68% | 25.49% | 20.08% | 23.63% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $2,304,000K ÷ $6,903,000K
= 33.38%
The return on equity (ROE) of Waste Management, Inc. has shown a generally increasing trend over the past five years, indicating an improvement in the company's ability to generate profit from shareholders' equity.
In 2023, Waste Management achieved an ROE of 33.38%, a slight increase from the previous year's 32.68%. This suggests that the company has been successful in utilizing its shareholders' equity to generate profit.
Comparing the ROE in 2023 to that of 2020, there has been a notable improvement from 20.08% to 33.38%, reflecting enhanced efficiency in using equity to generate returns for shareholders.
The ROE in 2021 was 25.49%, which, although lower than in 2023, still indicates a solid performance in generating returns on equity.
However, in 2019, Waste Management's ROE was at 23.63%, slightly lower than in the most recent years. This may indicate some fluctuations in the company's profitability during that period.
Overall, Waste Management, Inc. has demonstrated a consistent increase in its return on equity over the past five years, highlighting the company's effective utilization of shareholders' equity to generate profits.
Peer comparison
Dec 31, 2023