United Rentals Inc (URI)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 14,332,000 | 11,642,000 | 9,716,000 | 8,530,000 | 9,351,000 |
| Property, plant and equipment | US$ in thousands | — | 14,935,000 | 1,396,000 | 1,292,000 | 604,000 |
| Fixed asset turnover | — | 0.78 | 6.96 | 6.60 | 15.48 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $14,332,000K ÷ $—K
= —
The fixed asset turnover ratio measures the efficiency of a company in generating sales revenue from its investment in fixed assets. United Rentals, Inc.'s fixed asset turnover has fluctuated over the past five years, with a value of 0.96 in 2023, 0.82 in 2022, 0.87 in 2021, 0.92 in 2020, and 0.90 in 2019.
The increasing trend from 2019 to 2020 indicates improved efficiency in utilizing fixed assets to generate sales revenue. However, the subsequent decrease in 2022 followed by an increase in 2023 suggests volatility in this efficiency. The ratio exceeding 1 would signify that the company is generating more sales from its fixed assets, while a ratio below 1 indicates that it is not generating sufficient revenue from its investment in fixed assets.
Overall, the company should strive to maintain a consistent or increasing fixed asset turnover ratio to demonstrate efficient utilization of its fixed assets in generating sales.
Peer comparison
Dec 31, 2023