Waste Management Inc (WM)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 5.40 | 4.75 | 4.58 | 4.08 | 3.94 |
Waste Management Inc's solvency ratios paint a picture of strong financial health and stability. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have consistently remained at 0.00 across the years 2020 through 2024. This indicates that the company has not relied heavily on debt to finance its operations and investments, contributing to a lower level of financial risk.
However, the Financial leverage ratio has shown a steady increase from 3.94 in 2020 to 5.40 in 2024. This signifies that the company's reliance on debt to support its operations has been on the rise over the years, which may raise concerns about its capacity to meet debt obligations in the future.
In conclusion, while Waste Management Inc's debt-related ratios suggest a conservative financial approach with strong solvency, the increasing trend in the Financial leverage ratio warrants monitoring to ensure sustainable financial stability in the long term.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 5.58 | 6.06 | 7.92 | 7.64 | 5.15 |
The interest coverage ratio for Waste Management Inc has shown a generally positive trend over the past five years, reflecting the company's ability to meet its interest obligations comfortably. Starting at 5.15 in December 31, 2020, the ratio increased to 7.64 by December 31, 2021, further improving to 7.92 by December 31, 2022. However, there was a slight decrease to 6.06 by December 31, 2023, and a further decline to 5.58 by December 31, 2024.
Overall, Waste Management Inc's interest coverage ratios indicate that the company has been able to generate sufficient earnings to cover its interest expenses, although there was a slight dip in the later years. This suggests that the company has been managing its debt and interest obligations effectively, but it may be worth monitoring the trend to ensure ongoing financial stability.