United Rentals Inc (URI)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	9,195,000	8,519,000	6,646,000	5,863,000	5,347,000
Inventory	US$ in thousands	200,000	205,000	232,000	164,000	125,000
Inventory turnover		45.98	41.56	28.65	35.75	42.78

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $9,195,000K ÷ $200,000K
= 45.98

United Rentals Inc's inventory turnover ratio has shown some fluctuations over the past five years. In 2020, the inventory turnover was reported at 42.78, indicating that the company was able to sell and replace its inventory approximately 42.78 times during the year. Subsequently, in 2021 and 2022, the inventory turnover decreased to 35.75 and 28.65, respectively, which suggests that the company took longer to sell and replenish its inventory during those years.

However, there was a notable improvement in 2023, as the inventory turnover ratio increased to 41.56, indicating a more efficient management of inventory during that period. This improvement was further reinforced in 2024, where the inventory turnover ratio reached 45.98, showcasing the company's enhanced ability to sell and replace inventory within a shorter timeframe.

Overall, while there have been fluctuations in United Rentals Inc's inventory turnover ratio over the five-year period, the recent increase in 2024 suggests that the company has been able to manage its inventory more effectively, potentially leading to improved liquidity and profitability.