Waste Management, Inc. — Earnings Quality Grade F
WM · Industrials
Major red flags
Screening Summary
Management Signals
Source: SEC EDGAR 8-K Item 5.02, with exhibit links when available
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 50 days, change -4 days YoY
AR growth 5.0% vs revenue growth 14.2%
Revenue 14.2%, CFFO 12.1%. Cash follows revenue
Expense Quality
Inventory 9.2% vs COGS 12.2%. Normal
CapEx growth -0.1% vs revenue 14.2%. Normal
SG&A/Gross Profit = 25.8%, excellent (<30%)
Gross margin 40.4%, change +1.1pp. Stable
Cash Flow Quality
CFFO/NI = 2.23. Profits backed by cash
FCF $2.8B, FCF/NI = 1.04
Accruals ratio = -7.3%. Low accruals
Cash $0.2B covers only 1% of debt $22.9B
Balance Sheet Health
Goodwill+Intangibles $17.6B = 177% of equity. Over 50%
Debt/EBITDA = 3.2x. Healthy
Other assets 7.1% vs revenue 14.2%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 0% YoY. Normal
Manipulation Score
M-Score = -2.80 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25