Waste Connections (NYSE:WCN) Asset Turnover

: 0.11 (As of Mar. 2023)

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Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Waste Connections's Revenue for the three months ended in Mar. 2023 was $1,901 Mil. Waste Connections's Total Assets for the quarter that ended in Mar. 2023 was $17,181 Mil. Therefore, Waste Connections's Asset Turnover for the quarter that ended in Mar. 2023 was 0.11.

Asset Turnover is linked to ROE % through Du Pont Formula. Waste Connections's annualized ROE % for the quarter that ended in Mar. 2023 was 11.03%. It is also linked to ROA % through Du Pont Formula. Waste Connections's annualized ROA % for the quarter that ended in Mar. 2023 was 4.61%.

Waste Connections Asset Turnover Historical Data

The historical data trend for Waste Connections's Asset Turnover 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

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Asset Turnover

0.40

0.41

0.39

0.43

0.45

Waste Connections Quarterly Data
	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23
Asset Turnover																0.11	0.12	0.12	0.11	0.11

Competitive Comparison

For the Waste Management subindustry, Waste Connections's Asset Turnover, along with its competitors' market caps and Asset Turnover 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.

Annual Data Quarterly Data

Waste Connections Asset Turnover Distribution

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

* The bar in red indicates where Waste Connections's Asset Turnover falls in comparison to its industry or sector. The grey bar indicates the Asset Turnover's extreme value range as defined by GuruFocus.

Waste Connections Asset Turnover Calculation

Asset Turnover measures how quickly a company turns over its asset through sales.

Waste Connections's Asset Turnover for the fiscal year that ended in Dec. 2022 is calculated as

	Asset Turnover
=	Revenue	/	Average Total Assets
=	Revenue (A: Dec. 2022 )	/	( (Total Assets (A: Dec. 2021 )	+	Total Assets (A: Dec. 2022 ))	/ count )
=	7211.859	/	( (14699.924	+	17134.603)	/ 2 )
=	7211.859	/	15917.2635
=	0.45

Waste Connections's Asset Turnover for the quarter that ended in Mar. 2023 is calculated as

	Asset Turnover
=	Revenue	/	Average Total Assets
=	Revenue (Q: Mar. 2023 )	/	( (Total Assets (Q: Dec. 2022 )	+	Total Assets (Q: Mar. 2023 ))	/ count )
=	1900.503	/	( (17134.603	+	17227.094)	/ 2 )
=	1900.503	/	17180.8485
=	0.11

Companies with low profit margins tend to have high Asset Turnover, while those with high profit margins have low Asset Turnover. Companies in the retail industry tend to have a very high turnover ratio.

Waste Connections (NYSE:WCN) Asset Turnover Explanation

Asset Turnover is linked to ROE % through Du Pont Formula.

Waste Connections's annulized ROE % for the quarter that ended in Mar. 2023 is

	ROE %^**		(Q: Mar. 2023 )
=	Net Income	/	Total Stockholders Equity
=	791.252	/	7171.3465
=	(Net Income / Revenue)	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(791.252 / 7602.012)	*	(7602.012 / 17180.8485)	*	(17180.8485/ 7171.3465)
=	Net Margin %	*	Asset Turnover	*	Equity Multiplier
=	10.41 %	*	0.4425	*	2.3958
=	ROA %	*	Equity Multiplier
=	4.61 %	*	2.3958
=	11.03 %

Note: The Net Income data used here is four times the quarterly (Mar. 2023) net income data. The Revenue data used here is four times the quarterly (Mar. 2023) revenue data.

^** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.

It is also linked to ROA % through Du Pont Formula:

Waste Connections's annulized ROA % for the quarter that ended in Mar. 2023 is

	ROA %		(Q: Mar. 2023 )
=	Net Income	/	Total Assets
=	791.252	/	17180.8485
=	(Net Income / Revenue)	*	(Revenue / Total Assets)
=	(791.252 / 7602.012)	*	(7602.012 / 17180.8485)
=	Net Margin %	*	Asset Turnover
=	10.41 %	*	0.4425
=	4.61 %

Note: The Net Income data used here is four times the quarterly (Mar. 2023) net income data. The Revenue data used here is four times the quarterly (Mar. 2023) revenue data.

Be Aware

In the article Joining The Dark Side: Pirates, Spies and Short Sellers, James Montier reported that In their US sample covering the period 1968-2003, Cooper et al find that firms with low asset growth outperformed firms with high asset growth by an astounding 20% p.a. equally weighted. Even when controlling for market, size and style, low asset growth firms outperformed high asset growth firms by 13% p.a. Therefore a company with fast asset growth may underperform.

Therefore, it is a good sign if a company's Asset Turnover is consistent or even increases. If a company's asset grows faster than sales, its Asset Turnover will decline, which can be a warning sign.

Waste Connections Asset Turnover Related Terms

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Waste Connections (NYSE:WCN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Waste Management » Waste Connections Inc (NYSE:WCN) » Definitions » Asset Turnover

Comparable Companies

Traded in Other Exchanges

WCN:Mexico UI51:Germany WCN:Canada

Address

6220 Highway 7, Suite 600, Woodbridge, Vaughan, ON, CAN, L4H 4G3

Website

https://www.wasteconnections.com

Waste Connections is the third-largest integrated provider of traditional solid waste and recycling services in the North America, operating 97 active landfills (12 are exploration and production waste landfills and 14 are nonmunicipal waste landfills), 142 transfer stations, and 71 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 2021, 14% of consolidated revenue was generated from the firm's Canadian segment.

Executives

Andrea E. Bertone	director	C/O CORP. SECRETARY, PEABODY ENERGY CORP, 701 MARKET STREET, ST. LOUIS MO 63101
Robert Michael Cloninger	officer: SR VP, Deputy General Counsel	3 WATERWAY SQUARE PLACE, SUITE 110, THE WOODLANDS TX 77380
Susan Netherton	officer: VP People, Training & Devlpmnt	3 WATERWAY SQUARE PLACE, SUITE 110, THE WOODLANDS TX 77380
Jason Craft	officer: Sr Vice President-Operations	3 WATERWAY SQUARE PLACE, SUITE #110, THE WOODLANDS TX 77380
Elise Lipman Jordan	director	3 WATERWAY SQUARE PLACE, SUITE #110, THE WOODLANDS TX 77380
Eric Hansen	officer: Senior Vice President and CIO	3 WATERWAY SQUARE PLACE, SUITE #110, THE WOODLANDS TX 77380
Mary Anne Whitney	officer: Sr Vice President - Finance	3 WATERWAY SQUARE PLACE, SUITE #110, THE WOODLANDS TX 77380
Michael W Harlan	director	C/O WASTE CONNECTIONS, INC., 610 APPLEWOOD CRESCENT, SUITE 200, VAUGHAN A6 L4K 0C3
Patrick James Shea	officer: Sr. VP, General Counsel & Sec	3 WATERWAY SQUARE PLACE, SUITE 110, THE WOODLANDS TX 77380
Matthew Stephen Black	officer: Sr. Vice President - Tax	3 WATERWAY SQUARE PLACE, SUITE #110, THE WOODLANDS TX 77380
Edward E Guillet	director	C/O WASTE CONNECTIONS, INC, 610 APPLEWOOD CRESCENT, SUITE 200, VAUGHAN A6 L4K 0C3
Worthing Jackman	officer: EVP & CFO	3 WATERWAY SQUARE PLACE, SUITE 110, THE WOODLANDS TX 77380
Darrell W Chambliss	officer: EVP & COO	3 WATERWAY SQUARE PLACE, SUITE 110, THE WOODLANDS TX 77380
David M Hall	officer: Sr. Vice President	3 WATERWAY SQUARE PLACE, SUITE 110, THE WOODLANDS TX 77380
James Little	officer: Sr. Vice President Engineering	3 WATERWAY SQUARE PLACE, SUITE 110, THE WOODLANDS TX 77380