Revenue Analysis
Over the recent years, Total Revenue and Operating Revenue at WM have shown gradual growth, increasing from $4.892 billion in Q1 2023 to $5.159 billion by Q1 2024. Similarly, Gross Profit has grown from $1.806 billion in Q1 2023 to $2.019 billion in Q1 2024. The increase in revenue and gross margin reflects an effective strategy in revenue management and market expansion.
Cost Management
Cost of Revenue has remained relatively stable, around $3.14 billion at the end of 2023 and $3.14 billion by March 2024, suggesting effective cost stabilization in core operational processes. Operating Expense shows minor fluctuations but generally stable around $1 billion, insinuating controlled operational spending. The Total Expenses aligned closely with these figures, underscoring controlled expenditure despite revenue growth.
Profitability Analysis
EBITDA has been robust, growing from $1.321 billion in Q1 2023 to $1.513 billion in Q1 2024. Consistent growth in Operating Income from $825 million in Q1 2023 to $1.014 billion in Q1 2024 and stable Pretax Income around $869 million by Q1 2024 illustrates solid profitability. Net Income also improves significantly, from $533 million in Q1 2023 to $708 million by Q1 2024, highlighting effective net earnings management and profitability enhancement strategies.
Cash Flow Indicators
Reconciled Depreciation expenses have gradually increased, indicative of a growing asset base and consequent depreciation from $505 million in Q1 2023 to $514 million by Q1 2024. The Interest Expense has remained significant, hovering around $130 million by Q1 2024, showing consistent financial costs related to debt management.
Taxation
The Tax Rate has shown variability, with notable adjustments in tax effects from unusual items leading to substantial impacts in specific quarters. The Tax Provision has risen in response to increased profitability, from $164 million in Q1 2023 to $162 million by Q1 2024.
Shareholder Metrics
The analysis of Diluted EPS and Basic EPS shows considerable improvement from $1.3 and $1.31 respectively in Q1 2023 to $1.75 and $1.76 by Q1 2024. Average Shares on a diluted basis have remained stable around 400 million shares, ensuring shareholder value enhancement. Net Income Available to Common Stockholders has grown significantly, reflecting robust shareholder returns.
Conclusion
WM has demonstrated a strong and stable financial performance over the past three years with consistent growth in revenue, well-managed operational costs, and significant improvements in net income and profitability metrics. This robust performance underlines effective strategic management and offers a promising outlook for future profitability and shareholder value.