United Rentals Inc (URI)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Cost of revenue (ttm)	US$ in thousands	9,195,000	8,904,000	8,740,000	8,614,000	8,519,000	8,161,000	7,666,000	7,158,000	6,646,000	6,453,000	6,261,000	6,052,000	5,863,000	5,658,000	5,466,000	5,292,000	5,347,000	5,428,000	5,582,000	5,723,000
Inventory	US$ in thousands	200,000	211,000	219,000	208,000	205,000	201,000	210,000	222,000	232,000	193,000	199,000	179,000	164,000	166,000	174,000	114,000	125,000	108,000	107,000	115,000
Inventory turnover		45.98	42.20	39.91	41.41	41.56	40.60	36.50	32.24	28.65	33.44	31.46	33.81	35.75	34.08	31.41	46.42	42.78	50.26	52.17	49.77

December 31, 2024 calculation

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

The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times the company sells and replaces its inventory within a specific time period. A higher inventory turnover ratio generally indicates more efficient inventory management.

Analyzing the inventory turnover data of United Rentals Inc from March 31, 2020, to December 31, 2024, we observe fluctuations in the ratio:

- In the first few quarters, the inventory turnover ratio increased steadily from 49.77 to 52.17 by June 30, 2020, indicating an improvement in inventory management.
- However, the ratio decreased to 42.78 by December 31, 2020, suggesting a slower turnover of inventory during that period.
- Subsequently, the ratio fluctuated within a range, showing some variability in inventory management efficiency.
- Notably, the ratio declined to 28.65 by December 31, 2022, implying a significant decrease in the rate of inventory turnover.
- Thereafter, the ratio gradually increased, reaching 45.98 by December 31, 2024, indicating an improvement in inventory turnover efficiency.

Overall, the analysis of United Rentals Inc's inventory turnover ratio reflects variations in the company's inventory management practices over the period, with fluctuations in efficiency and turnover rates.