Waste Management Inc (WM)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (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 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 6,903,000 | 6,950,000 | 6,909,000 | 6,794,000 | 6,849,000 | 7,010,000 | 7,190,000 | 7,144,000 | 7,124,000 | 7,172,000 | 7,352,000 | 7,427,000 | 7,452,000 | 7,155,000 | 6,891,000 | 6,743,000 | 7,068,000 | 6,785,000 | 6,466,000 | 6,415,000 |
| Return on total capital | 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% | 38.29% | 41.53% | 43.04% | 43.68% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $3,575,000K ÷ ($—K + $6,903,000K)
= 51.79%
Waste Management, Inc.'s return on total capital has shown consistency and improvement over the quarters provided. The return on total capital has remained above 15% for the past eight quarters, indicating strong efficiency in generating returns from its total capital base. Throughout 2022 and 2023, there has been a gradual increase in the return on total capital, reaching a peak of 16.27% in Q4 2023. This signifies that Waste Management has been effective in utilizing its capital resources to generate profits for its investors. Overall, the trend suggests that Waste Management has been successful in efficiently deploying its capital to create value for its stakeholders.
Peer comparison
Dec 31, 2023