United Rentals Inc (URI)
Payables 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 |
| Payables | US$ in thousands | 748,000 | 1,216,000 | 1,349,000 | 959,000 | 905,000 | 1,121,000 | 1,339,000 | 1,117,000 | 1,139,000 | 1,136,000 | 1,065,000 | 828,000 | 816,000 | 1,057,000 | 897,000 | 562,000 | 466,000 | 541,000 | 316,000 | 484,000 |
| Payables turnover | 12.29 | 7.32 | 6.48 | 8.98 | 9.41 | 7.28 | 5.73 | 6.41 | 5.83 | 5.68 | 5.88 | 7.31 | 7.19 | 5.35 | 6.09 | 9.42 | 11.47 | 10.03 | 17.66 | 11.82 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $9,195,000K ÷ $748,000K
= 12.29
United Rentals Inc's payables turnover has shown fluctuations over the periods indicated. The payables turnover ratio represents how efficiently the company is managing its trade credit obligations. A higher payables turnover ratio indicates that the company is paying off its suppliers more quickly.
In the most recent period ending December 31, 2024, the payables turnover ratio was 12.29, showing an improvement compared to previous periods. This suggests that the company was able to pay off its trade payables nearly 12.29 times during the year.
It is important to note that the payables turnover fluctuated throughout the periods analyzed, reaching its peak in June 30, 2020, at 17.66, and its lowest point in September 30, 2021, at 5.35. These fluctuations may indicate changes in the company's payment terms with suppliers, changes in purchasing patterns, or changes in the industry environment.
Overall, a higher payables turnover ratio is generally favorable as it indicates efficient management of trade credit obligations. However, it is essential to consider industry norms and company-specific factors when interpreting this ratio in the context of United Rentals Inc.
Peer comparison
Dec 31, 2024