United Rentals Inc (URI)

Payables 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
Payables	US$ in thousands	748,000	905,000	1,139,000	816,000	466,000
Payables turnover		12.29	9.41	5.83	7.19	11.47

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $9,195,000K ÷ $748,000K
= 12.29

The payables turnover ratio measures how efficiently a company is managing its accounts payable. A higher ratio indicates that the company is paying its suppliers more quickly.

United Rentals Inc's payables turnover ratio has fluctuated over the years:
- As of December 31, 2020, the payables turnover ratio was 11.47, indicating that the company was paying its suppliers approximately 11.47 times during that year.
- By December 31, 2021, the ratio decreased to 7.19, suggesting that the company's payment frequency to suppliers reduced.
- Further declining to 5.83 by the end of 2022 may indicate a slower payment cycle, potentially affecting supplier relationships.
- The ratio then improved to 9.41 as of December 31, 2023, showing a faster payment cycle compared to the previous year.
- Notably, the payables turnover ratio increased significantly to 12.29 by December 31, 2024, suggesting that the company had become more efficient in managing its accounts payable during that period.

Overall, fluctuations in the payables turnover ratio for United Rentals Inc indicate changes in how effectively the company is balancing its liabilities to suppliers.