Waste Management Inc (WM)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 44,567,000 | 34,730,000 | 33,999,000 | 32,666,000 | 32,823,000 | 31,935,000 | 31,614,000 | 31,290,000 | 31,367,000 | 29,841,000 | 30,128,000 | 29,219,000 | 29,097,000 | 28,841,000 | 29,037,000 | 29,070,000 | 29,345,000 | 24,772,000 | 26,619,000 | 27,178,000 |
| Total stockholders’ equity | US$ in thousands | 8,252,000 | 7,979,000 | 7,457,000 | 7,082,000 | 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 |
| Financial leverage ratio | 5.40 | 4.35 | 4.56 | 4.61 | 4.75 | 4.59 | 4.58 | 4.61 | 4.58 | 4.26 | 4.19 | 4.09 | 4.08 | 4.02 | 3.95 | 3.91 | 3.94 | 3.46 | 3.86 | 4.03 |
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 fluctuating over the past few years. It ranged from 3.46 to 5.40 during the period from March 31, 2020, to December 31, 2024. The financial leverage ratio measures the company's use of debt to finance its operations and investments. A higher financial leverage ratio indicates that the company is relying more on debt to fund its activities, which can lead to higher financial risk but also potentially higher returns. Waste Management Inc's increasing financial leverage ratio over the years suggests that the company has been taking on more debt relative to its equity, which may be a strategic decision to support growth initiatives or capital investments. It is essential for investors and stakeholders to monitor this ratio to assess the company's financial health and risk profile.
Peer comparison
Dec 31, 2024