Gross Margin % is calculated as gross profit divided by its revenue. Waste Management's Gross Profit for the
three
months ended in Jun. 2022 was $1,885 Mil. Waste Management's Revenue for the
three
months ended in Jun. 2022 was $5,027 Mil. Therefore, Waste Management's Gross Margin % for the quarter that ended in Jun. 2022 was 37.50%.
The historical rank and industry rank for Waste Management's Gross Margin % or its related term are showing as below:
WM'
s Gross Margin % Range Over the Past 10 Years
Min: 34.84 Med: 37.68 Max: 38.62
Current: 37.44
During the past 13 years, the highestGross Margin % of Waste Management was 38.62%. The lowest was 34.84%. And the median was 37.68%.
WM's Gross Margin % is ranked better than 66.67% of 207
companies
in the Waste Management industry
Industry Median: 28.19
vs WM: 37.44
Waste Management had a gross margin of 37.50% for the quarter that ended in Jun. 2022 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Waste Management was 0.40% per year.
Waste Management Gross Margin % Historical Data
The historical data trend for Waste Management's Gross Margin % 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
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Gross Margin %
37.72
37.98
38.56
38.62
38.03
Waste Management Quarterly Data
Sep17
Dec17
Mar18
Jun18
Sep18
Dec18
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Gross Margin %
38.87
37.71
36.83
37.72
37.50
Competitive Comparison
For the Waste Management subindustry, Waste Management's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution
For the Waste Management industry and Industrials sector, Waste Management's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Waste Management's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Waste Management had a gross margin of 37.50% for the quarter that ended in Jun. 2022 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Waste Management Gross Margin % Related Terms
Thank you for viewing the detailed overview of Waste Management's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Waste Management ranks as the largest integrated provider of traditional solid waste services in the United States, operating approximately 268 active landfills and about 350 transfer stations (includes acquired Advanced Disposal landfills and transfer stations). The company serves residential, commercial, and industrial end markets and is also a leading recycler in North America.
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