Waste Management Inc (WM)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 44,567,000 | 32,823,000 | 31,367,000 | 29,097,000 | 29,345,000 |
| Total stockholders’ equity | US$ in thousands | 8,252,000 | 6,903,000 | 6,849,000 | 7,124,000 | 7,452,000 |
| Financial leverage ratio | 5.40 | 4.75 | 4.58 | 4.08 | 3.94 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $44,567,000K ÷ $8,252,000K
= 5.40
The financial leverage ratio of Waste Management Inc has been consistently increasing over the years, indicating a rising level of leverage in the company's capital structure. This trend suggests that the company is relying more on debt to finance its operations and investments. A higher financial leverage ratio may indicate increased financial risk, as the company has a higher proportion of debt relative to equity. It is important for investors and stakeholders to closely monitor this ratio to assess the company's ability to meet its debt obligations and manage its overall financial risk effectively.
Peer comparison
Dec 31, 2024