>
Switch to:

Waste Connections ROA %

: 5.03% (As of Jun. 2021)
View and export this data going back to 1987. Start your Free Trial

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Waste Connections's annualized Net Income for the quarter that ended in Jun. 2021 was $708 Mil. Waste Connections's average Total Assets over the quarter that ended in Jun. 2021 was $14,075 Mil. Therefore, Waste Connections's annualized ROA % for the quarter that ended in Jun. 2021 was 5.03%.

The historical rank and industry rank for Waste Connections's ROA % or its related term are showing as below:

NYSE:WCN' s ROA % Range Over the Past 10 Years
Min: -1.85   Med: 4.08   Max: 5.29
Current: 4.5

-1.85
5.29

During the past 13 years, Waste Connections's highest ROA % was 5.29%. The lowest was -1.85%. And the median was 4.08%.

NYSE:WCN's ROA % is ranked higher than
79% of the 52 Companies
in the Waste Management industry.

( Industry Median: -5.80 vs. NYSE:WCN: 4.50 )

Waste Connections ROA % Historical Data

The historical data trend for Waste Connections's ROA % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Waste Connections Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
ROA %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.04 4.99 4.44 4.30 1.48

Waste Connections Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
ROA % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -6.52 4.61 3.75 4.57 5.03

Competitive Comparison

For the Waste Management subindustry, Waste Connections's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Waste Connections ROA % Distribution

For the Waste Management industry and Industrials sector, Waste Connections's ROA % distribution charts can be found below:

* The bar in red indicates where Waste Connections's ROA % falls into.



Waste Connections ROA % Calculation

Waste Connections's annualized ROA % for the fiscal year that ended in Dec. 2020 is calculated as:

ROA %=Net Income (A: Dec. 2020 )/( (Total Assets (A: Dec. 2019 )+Total Assets (A: Dec. 2020 ))/ count )
=204.677/( (13737.695+13992.364)/ 2 )
=204.677/13865.0295
=1.48 %

Waste Connections's annualized ROA % for the quarter that ended in Jun. 2021 is calculated as:

ROA %=Net Income (Q: Jun. 2021 )/( (Total Assets (Q: Mar. 2021 )+Total Assets (Q: Jun. 2021 ))/ count )
=708.188/( (14042.929+14106.207)/ 2 )
=708.188/14074.568
=5.03 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Jun. 2021) net income data. ROA % is displayed in the 30-year financial page.


Waste Connections  (NYSE:WCN) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Jun. 2021 )
=Net Income/Total Assets
=708.188/14074.568
=(Net Income / Revenue)*(Revenue / Total Assets)
=(708.188 / 6135.724)*(6135.724 / 14074.568)
=Net Margin %*Asset Turnover
=11.54 %*0.4359
=5.03 %

Note: The Net Income data used here is four times the quarterly (Jun. 2021) net income data. The Revenue data used here is four times the quarterly (Jun. 2021) revenue data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


Waste Connections ROA % Related Terms

Thank you for viewing the detailed overview of Waste Connections's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.


Waste Connections Business Description

Waste Connections logo
Industry
Industrials » Waste Management NAICS : 221310 SIC : 4931
Traded in Other Exchanges
Address
610 Applewood Crescent, 2nd Floor, Vaughan, ON, CAN, L4K 0E3
Waste Connections is the third- largest integrated provider of traditional solid waste and recycling services in the North America, operating 91 active landfills (12 are E&P waste landfills), 132 transfer stations, and 68 recycling operations. The firm serves residential, commercial, industrial, and energy end markets. Waste Connections entered the Canadian market with its 2016 merger with Progressive Waste. In 2020, 13% of consolidated revenue was generated from the firm's Canadian segment.

Waste Connections Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)