ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Waste Management's annualizedNet Income for the quarter that ended in Dec. 2023 was $1,972 Mil.
Waste Management's average Total Assets over the quarter that ended in Dec. 2023 was $32,379 Mil. Therefore, Waste Management's annualized ROA % for the quarter that ended in Dec. 2023 was 6.09%.
The historical rank and industry rank for Waste Management's ROA % or its related term are showing as below:
WM'
s ROA % Range Over the Past 10 Years
Min: 3.61 Med: 6.42 Max: 9.13
Current: 7.24
During the past 13 years, Waste Management's highest ROA % was 9.13%. The lowest was 3.61%. And the median was 6.42%.
WM's ROA % is ranked better than 85.12% of 242
companies
in the Waste Management industry
Industry Median: 2.255
vs WM: 7.24
Waste Management ROA % Historical Data
The historical data trend for Waste Management'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 Management Annual Data
Trend
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
ROA %
6.63
5.24
6.21
7.40
7.18
Waste Management Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
ROA %
6.52
6.81
7.82
8.35
6.09
Competitive Comparison
For the Waste Management subindustry, Waste Management'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 Management ROA % Distribution
For the Waste Management industry and Industrials sector, Waste Management's ROA % distribution charts can be found below:
* The bar in red indicates where Waste Management's ROA % falls into.
Waste Management ROA % Calculation
Waste Management's annualized ROA % for the fiscal year that ended in Dec. 2023 is calculated as:
* 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 (Dec. 2023) net income data.
ROA % is displayed in the 30-year financial page.
Waste Management (NYSE:WM) 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 banks 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:
Note:
The Net Income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) 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 Management ROA % Related Terms
Thank you for viewing the detailed overview of Waste Management's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Waste Management (Waste Management) Business Description
WM ranks as the largest integrated provider of traditional solid waste services in the United States, operating 259 active landfills and about 337 transfer stations. The company serves residential, commercial, and industrial end markets and is also a leading recycler in North America.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
WM has been successfully added to your 