Waste Management Inc (WM)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 27,743,000 | 27,109,000 | 25,986,000 | 23,373,000 |
| 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 |
| Financial leverage ratio | 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 | 3.93 | 4.00 | 4.02 | 3.64 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $32,823,000K ÷ $6,903,000K
= 4.75
The financial leverage ratio of Waste Management, Inc. has shown some fluctuations over the past eight quarters. The ratio has generally been within the range of 4.09 to 4.75 during this period.
In Q4 2023, the financial leverage ratio increased to 4.75 from 4.59 in Q3 2023, indicating a higher level of financial leverage compared to the previous quarter. This increase may suggest that the company is relying more on debt to finance its operations or investment activities.
However, it's worth noting that the financial leverage ratio has been in the range of 4.19 to 4.75 since Q2 2022, showing a relatively stable trend over the past year. This suggests that Waste Management, Inc. has maintained a consistent level of financial leverage overall.
Investors and stakeholders should consider the company's ability to manage its debt levels effectively and its overall financial health when evaluating the implications of changes in the financial leverage ratio. Additionally, monitoring the trend of this ratio over time can provide insights into the company's capital structure and risk profile.
Peer comparison
Dec 31, 2023