Waste Management Inc (WM)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 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 |
Waste Management Inc has consistently maintained a low level of debt compared to its total assets, with a debt-to-assets ratio of 0.00 across all reported periods. This indicates that the company finances its operations primarily through equity rather than debt, suggesting a strong financial position and low financial risk.
Similarly, the debt-to-capital ratio and debt-to-equity ratio for Waste Management Inc have also remained at 0.00 throughout the reported periods. These ratios further confirm the company's minimal reliance on debt for financing its operations and its strong equity base.
The financial leverage ratio, which measures the company's reliance on debt to finance its assets, shows a slight increase over the years from 4.03 in March 2020 to 5.40 in December 2024. Despite this increase, Waste Management Inc's financial leverage remains within a reasonable range, indicating a manageable level of debt relative to its capital structure.
Overall, Waste Management Inc demonstrates a solid solvency position with minimal debt levels and a conservative financial structure, which bodes well for the company's long-term financial sustainability and ability to weather economic challenges.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 20.73 | 7.48 | 7.35 | 7.38 | 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 |
The interest coverage ratio of Waste Management Inc has been relatively stable and healthy over the past few years, indicating the company's ability to comfortably meet its interest obligations. The trend shows an improvement from 6.22 as of March 31, 2020, to a peak of 9.43 as of September 30, 2022, before slightly decreasing to 7.15 by December 31, 2023. There was a significant spike in the ratio to 20.73 by December 31, 2024, which may be attributed to various factors such as a decrease in interest expenses or an increase in operating income.
Overall, Waste Management Inc's interest coverage ratio demonstrates a strong financial position and the company's capability to generate sufficient earnings to cover its interest expenses. Investors and creditors typically view a high interest coverage ratio positively as it indicates a lower risk of default on debt payments. However, it is important to monitor future trends to ensure the company maintains a comfortable level of coverage to sustain its financial health.