Waste Management Inc (WM)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 6,903,000 | 6,849,000 | 7,124,000 | 7,452,000 | 7,068,000 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $6,903,000K)
= 0.00
The debt-to-capital ratio of Waste Management, Inc. has been relatively stable over the past five years, with values ranging from 0.65 to 0.70. This ratio indicates the proportion of the company's capital that is financed by debt. A higher ratio suggests a higher level of debt relative to total capital, which may indicate higher financial risk and potential difficulties in meeting debt obligations. However, the company's ratio has not shown significant fluctuations, suggesting a consistent approach to managing its capital structure. It is important to consider industry benchmarks and compare the company's ratio with its peers to gain further insights into its leverage and financial health.
Peer comparison
Dec 31, 2023