Waste Management Inc (WM)
Debt-to-equity ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $6,903,000K
= 0.00
The debt-to-equity ratio of Waste Management, Inc. has been gradually increasing over the past two years, reaching 2.35 in Q4 2023 from 1.89 in Q1 2022. This ratio indicates that the company relies more on debt financing relative to equity financing. A higher debt-to-equity ratio may suggest that the company is taking on more debt to fund its operations or expansion, which could potentially increase financial risk.
The consistent increase in the debt-to-equity ratio may raise concerns about the company's ability to manage its debt levels effectively. Investors and stakeholders should closely monitor this trend to assess the company's financial health and risk profile. It may be advisable for Waste Management, Inc. to evaluate its capital structure and consider strategies to balance debt and equity levels to maintain long-term sustainability.
Peer comparison
Dec 31, 2023