Waste Management Inc (WM)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 4,063,000 | 3,575,000 | 3,365,000 | 2,965,000 | 2,434,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 8,252,000 | 6,903,000 | 6,849,000 | 7,124,000 | 7,452,000 |
| Return on total capital | 49.24% | 51.79% | 49.13% | 41.62% | 32.66% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $4,063,000K ÷ ($—K + $8,252,000K)
= 49.24%
Waste Management Inc's return on total capital has shown a positive trend over the five-year period from December 31, 2020, to December 31, 2024. The return on total capital increased steadily from 32.66% in 2020 to 49.24% in 2024. This indicates that Waste Management Inc has been efficiently utilizing its capital investments to generate profits for its stakeholders. The consistent improvement in return on total capital reflects the company's ability to generate higher returns relative to the total capital employed in its operations. Overall, Waste Management Inc's performance in terms of return on total capital has been impressive and demonstrates effective capital management strategies.
Peer comparison
Dec 31, 2024