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What is WM's Change in Working Capital?

  Waste Management Inc ( WM ) |
1995 - 2021 (27 years)

Change in Working Capital is 
-$367.2M (1Y -18.5% )

WM Stock Price & Change in Working Capital

Change in Working Capital for WM competitors.
SRCL CWST ECOL CLH RSG PESI WCN
Note: Stonk = Stock. Both words are used interchangeably. 🙂

Historical (All-Time) Stats for Change in Working Capital

chevron_right 2021 -$400.0M +172x *
( +21.1% / year avg)
chevron_left 1995 $2.3M
vertical_align_top Peak $3.0B +2.47x *
vertical_align_bottom Bottom -$2.0B
arrow_drop_up # Up Years 10 10 of 27
years up.
arrow_drop_down # Down Years 17
Up Years = Positive (0%+) YoY change
Down Years = Zero or Negative (0% or less) YoY change

Key Points (Stonk Price Comparison)

  • WM's stock price has rallied +4,321% from $2.65 in 1995 , or -0.24x the rate relative to it's change in working capital over the same period.
  • If WM grows it's stock at the same rate as it's change in working capital (+21.1%/year) , it's stock price will grow +678% and hit $794.12 over the next 10 years.
  • WM's stock price has gone up 7 of the 10 years (+70%) it's change in working capital were also up.
* A modified method (see: here) is used to calculate changes that involve negative numbers.
  • WM Historical Change in Working Capital Table
    in $ million
    * A modified method (see: here) is used to calculate changes that involve negative numbers.
    Year Change in Working Capital YoY % Change* Stock Price YoY % Change (Stock Price)
    4/1/2021 $-400 -80.2% $117.07 0.0%
    4/1/2020 $-2,020 -168.1% $117.07 5.7%
    4/1/2019 $2,966 425.9% $110.8 22.1%
    4/1/2018 $564 -195.9% $90.73 16.4%
    4/1/2017 $-588 79.3% $77.93 21.0%
    4/1/2016 $-328 -11.4% $64.41 33.7%
    4/1/2015 $-370 -147.9% $48.18 13.7%
    4/1/2014 $772 830.1% $42.37 10.3%
    4/1/2013 $83 -119.8% $38.41 44.2%
    4/1/2012 $-420 14.8% $26.63 8.6%
    4/1/2011 $-366 -137.6% $24.53 -4.9%
    4/1/2010 $973 725.0% $25.8 8.3%
    4/1/2009 $118 -122.1% $23.82 17.2%
    4/1/2008 $-534 341.3% $20.33 -12.1%
    4/1/2007 $-121 -906.7% $23.14 -3.7%
    4/1/2006 $15 -97.6% $24.03 25.5%
    4/1/2005 $633 -8012.5% $19.15 3.1%
    4/1/2004 $-8 -103.0% $18.57 4.0%
    4/1/2003 $268 -1024.1% $17.85 18.1%
    4/1/2002 $-29 -38.3% $15.12 -14.9%
    4/1/2001 $-47 -106.0% $17.77 22.4%
    4/1/2000 $789 -192.1% $14.51 30.3%
    4/1/1999 $-856 71.7% $11.13 -57.1%
    4/1/1998 $-499 -848.1% $25.96 15.9%
    4/1/1997 $66 401.5% $22.39 14.7%
    4/1/1996 $13 478.3% $19.52 53.6%
    4/1/1995 $2 - $12.71 -

  • About
    Industry: Waste Management
    Sector: Industrials
    Country: US
    IPO Date: 7/20/1993
    Stonk Exchange: NYSE
    • Waste Management, Inc
    • engages in the provision of waste management environmental services.
    • The company is headquartered in Houston, Texas and currently employs 43,700 full-time employees.
    • The Company, through its subsidiaries, is a provider of waste management environmental services.
    • The firm's segments include Solid Waste and Other.
    • The firm's Solid Waste segment includes its solid waste business.
    • The Other segment includes its Strategic Business Solutions (WMSBS) organization; its landfill gas-to-energy operations and third-party subcontract and administration services managed by its Energy and Environmental Services and WM Renewable Energy organizations; its recycling brokerage services, and its service offerings and solutions, such as portable self-storage and long distance moving services, fluorescent lamp recycling and interests it holds in oil and gas producing properties.
    • As of December 31, 2016, the Company owned or operated 243 solid waste landfills and five secure hazardous waste landfills.
    • Its recycling brokerage services involve managing the marketing of recyclable materials for third parties.

  • Change in Working Capital Summary: On the Cash Flow Statement, the Change in Working Capital is defined as Old Working Capital – New Working Capital, where Working Capital = Current Operational Assets – Current Operational Liabilities.

    It’s defined this way on the Cash Flow Statement because Working Capital is a Net Asset, and when an Asset increases, the company must spend cash to do so. For example, think about Inventory: if it goes up, and no other items change, the company must have spent some of its cash to purchase this Inventory.

    Therefore, if Working Capital increases, the company’s cash flow decreases, and if Working Capital decreases, the company’s cash flow increases.

    That explains why the Change in Working Capital has a negative sign when Working Capital increases, while it has a positive sign when Working Capital decreases.

    The Change in Working Capital gives you an idea of how much a company’s cash flow will differ from its Net Income (i.e., after-tax profits), and companies with more power to collect cash quickly from customers and delay payments to suppliers tend to have more positive Change in Working Capital figures.

    For more detailed definitions, please see Investopedia.