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Waste Management Gross Margin %

: 37.50% (As of Jun. 2022)
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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 highest Gross 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 %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 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 % 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 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.



Waste Management Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Waste Management's Gross Margin for the fiscal year that ended in Dec. 2021 is calculated as

Gross Margin % (A: Dec. 2021 )=Gross Profit (A: Dec. 2021 ) / Revenue (A: Dec. 2021 )
=6820 / 17931
=(Revenue - Cost of Goods Sold) / Revenue
=(17931 - 11111) / 17931
=38.03 %

Waste Management's Gross Margin for the quarter that ended in Jun. 2022 is calculated as


Gross Margin % (Q: Jun. 2022 )=Gross Profit (Q: Jun. 2022 ) / Revenue (Q: Jun. 2022 )
=1885 / 5027
=(Revenue - Cost of Goods Sold) / Revenue
=(5027 - 3142) / 5027
=37.50 %

* 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.


Waste Management  (NYSE:WM) Gross Margin % Explanation

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 Business Description

Waste Management logo
Address
800 Capitol Street, Suite 3000, Houston, TX, USA, 77002
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.
Executives
Carrasco Rafael officer: SVP Operations 800 CAPITOL STREET 3000 HOUSTON TX 77002
Sylvester Maryrose director C/O 3700 WEST JUNEAU AVENUE MILWAUKEE WI 53208
Menke Sean E director C/O IHS INC. 15 INVERNESS WAY EAST ENGLEWOOD CO 80112
Plummer William B director C/O UNITED RENTALS INC / DE 100 FIRST STAMFORD PL STE 700 STAMFORD CT 06902
Watson Michael J. officer: Sr. VP-Chief Customer Officer 800 CAPITOL STREET 3000 HOUSTON TX 77002
Batchelor Steve officer: Sr. Vice President Operations 800 CAPITOL STREET 3000 HOUSTON TX 77002
Oates-forney Tamla officer: Sr VP and Chief HR Officer 800 CAPITOL STREET 3000 HOUSTON TX 77002
Hmmer Tara J. officer: SVP Operat Safety Envir Compl 800 CAPITOL STREET 3000 HOUSTON X1 77002
Nagy Leslie K officer: VP & Chief Accounting Officer 5 GREENWAY PLAZA, SUITE 100 HOUSTON TX 77046
Sjoqvist Nikolaj H officer: SVP, Chief Digital Officer 800 CAPITOL STREET 3000 HOUSTON X1 77002
Boettcher Charles C officer: Sr VP Chief Legal Officer 800 CAPITOL STREET 3000 HOUSTON TX 77002
Shade Darren K officer: VP & Chief Accounting Officer 1001 FANNIN HOUSTON TX 77002
Mazzarella Kathleen M director C/O GRAYBAR ELECTRIC CO., INC 34 N. MERAMEC AVENUE CLAYTON MO 63105
Gluski Andres director 4300 WILSON BOULEVARD ARLINGTON VA 22203
Holt Victoria M director PPG INDUSTRIES, INC. ONE PPG PLACE PITTSBURGH PA 15272

Waste Management Headlines

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