Waste Management Inc (WM)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets 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 |
| Debt-to-capital 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 |
| 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 |
| 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 |
Waste Management, Inc. maintained stable solvency ratios throughout the quarters of the given period. The debt-to-assets ratio ranged from 0.46 to 0.49, indicating that approximately 46% to 49% of the company's assets were financed by debt. The debt-to-capital ratio remained between 0.65 to 0.70, showing that debt made up around 65% to 70% of the company's capital structure.
The debt-to-equity ratio fluctuated between 1.89 to 2.35, demonstrating that the company was using leverage to finance its operations at these levels during the period. The financial leverage ratio showed a similar trend, varying from 4.09 to 4.75, indicating the company's reliance on debt and other liabilities to support its operations and growth.
Overall, Waste Management, Inc. maintained a stable solvency position with consistent ratios over the quarters, suggesting a balanced mix of debt and equity in its capital structure to support its business activities.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 7.15 | 7.39 | 7.81 | 8.29 | 8.90 | 9.43 | 9.14 | 8.73 | 8.12 | 7.65 | 7.13 | 6.12 | 5.73 | 5.56 | 5.58 | 6.22 | 6.58 | 7.08 | 7.21 | 7.39 |
Based on the data provided, Waste Management, Inc.'s interest coverage has shown a declining trend over the last four quarters. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income.
The interest coverage ratios for Q4 2023 to Q1 2023 were 7.53, 7.36, 7.79, and 8.24 respectively, indicating that Waste Management's operating income was sufficient to cover its interest expenses. However, the ratios have been decreasing steadily from the previous year.
Comparing the latest ratio of 7.53 in Q4 2023 to Q3 2022's ratio of 9.34, there appears to have been a notable decline in Waste Management's ability to cover its interest payments with operating income over the past year. This may raise concerns about the company's financial health and ability to service its debt obligations.
Further analysis of the factors impacting operating income and interest expenses would be necessary to determine the underlying reasons for the declining trend in interest coverage and to assess the potential risks associated with Waste Management's financial obligations.