Aureus
COkay

Waste Management, Inc.(WM)

C

Financial data as of Dec 31, 2025Improving · Industrials

FCF Margin11.2%Free Cash Flow / Revenue
Cash Conversion223.2%Operating CF / Net Income
Free Cash Flow$2.8B
Revenue$25.2B
Net Cash-$22.7BNet debt position
Debt / FCF8.1xElevated debt burden
Current Ratio0.89Tight short-term liquidity
YoY FCF Growth+104.5%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseB
→
-1High debt-to-FCF ratio (8.1x)
→
-1Current ratio below 1.0 (0.89)
→
+1Strong YoY FCF growth (104.5% YoY)
→
FinalC

Analysis Summary

Strengths

  • Healthy FCF margin (11.2%)
  • Excellent cash conversion (223%)
  • Strong YoY FCF growth (+104.5%)
  • FCF trend is improving

Concerns

  • Heavy debt position ($22.7B)
  • High debt-to-FCF ratio (8.1x)
  • Current ratio below 1.0 — tight short-term liquidity

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin11.2%
Net Margin10.7%
Operating CF Margin24.0%
CapEx Ratio12.8%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$22.7BNet debt position
Debt / FCF8.1xElevated debt burden
Current Ratio0.89Tight liquidity
Debt / Equity2.29High leverage

Quarterly FCF Trend

+104.5% YoYImproving (+104.5%)

Free cash flow per quarter

Sector Comparison — Industrials

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameWaste Management, Inc.
SectorIndustrials
Free Cash Flow$2.8B
Revenue$25.2B
Net Income$2.7B
Operating Cash Flow$6.0B
Capital Expenditure$3.2B
FCF Margin11.2%
Cash Conversion Rate223.2%
Net Margin10.7%
Total Debt$22.9B
Total Cash$201.0M
Net Cash-$22.7B
Current Ratio0.89
Debt / Equity2.29
Debt / FCF8.1x
YoY FCF Growth+104.5%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeC
Data SourceYahoo Finance