GURUFOCUS.COM » STOCK LIST » Industrials » Waste Management » Waste Management Inc (WBO:WM) » Definitions » Net-Net Working Capital

Waste Management (WBO:WM) Net-Net Working Capital : €-53.69 (As of Sep. 2024)


View and export this data going back to 2019. Start your Free Trial

What is Waste Management Net-Net Working Capital?

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.

Waste Management's Net-Net Working Capital for the quarter that ended in Sep. 2024 was €-53.69.

The industry rank for Waste Management's Net-Net Working Capital or its related term are showing as below:

WBO:WM's Price-to-Net-Net-Working-Capital is not ranked *
in the Waste Management industry.
Industry Median: 10.55
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Waste Management Net-Net Working Capital Historical Data

The historical data trend for Waste Management's Net-Net Working Capital 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 Net-Net Working Capital Chart

Waste Management Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only -33.09 -38.31 -42.70 -51.47 -53.45

Waste Management Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Net-Net Working Capital Get a 7-Day Free Trial 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 -52.95 -53.45 -53.35 -54.32 -53.69

Competitive Comparison of Waste Management's Net-Net Working Capital

For the Waste Management subindustry, Waste Management's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital 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's Price-to-Net-Net-Working-Capital Distribution in the Waste Management Industry

For the Waste Management industry and Industrials sector, Waste Management's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Waste Management's Price-to-Net-Net-Working-Capital falls into.



Waste Management Net-Net Working Capital Calculation

Waste Management's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2023 is calculated as

Net-Net Working Capital(A: Dec. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(419.986+0.75 * 2414.461+0.5 * 158.641-23775.059
-0--6.419)/401.455
=-53.45

Waste Management's Net-Net Working Capital (NNWC) per share for the quarter that ended in Sep. 2024 is calculated as

Net-Net Working Capital(Q: Sep. 2024 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(553.214+0.75 * 2559.741+0.5 * 165.784-24108.958
-0--6.307)/401.354
=-53.69

* 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 calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.

In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.

This is a conservative way of estimating the company's value.


Waste Management  (WBO:WM) Net-Net Working Capital Explanation

One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.

Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.


Waste Management Net-Net Working Capital Related Terms

Thank you for viewing the detailed overview of Waste Management's Net-Net Working Capital provided by GuruFocus.com. Please click on the following links to see related term pages.


Waste Management Business Description

Address
800 Capitol Street, Suite 3000, Houston, TX, USA, 77002
WM ranks as the largest integrated provider of traditional solid waste services in the United States, operating 263 active landfills and about 332 transfer stations. The company serves residential, commercial, industrial, and medical end markets and is also a leading recycler in North America.