United Rentals Inc (URI)
Payables turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 5,681,000 | 5,498,000 | 5,221,000 | 4,951,000 |
| Payables | US$ in thousands | 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 | 454,000 | 839,000 | 752,000 | 557,000 |
| Payables turnover | 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 | 12.51 | 6.55 | 6.94 | 8.89 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $8,519,000K ÷ $905,000K
= 9.41
The payables turnover ratio measures how efficiently a company manages its accounts payable by comparing the cost of goods sold to average accounts payable for a specific period.
Analyzing the payables turnover of United Rentals, Inc. based on the provided data, we observe fluctuations over the past eight quarters. The ratio has ranged from 4.10 to 6.82, with the highest value recorded at the end of December 2023 and the lowest at the end of September 2022.
The increasing trend in the payables turnover from the third quarter of 2022 to the end of 2023 indicates that United Rentals, Inc. has been managing its accounts payable more efficiently. This may suggest a more effective procurement process or improved vendor management.
While a high payables turnover ratio can indicate good liquidity and strong supplier relationships, it can also suggest that the company is not taking full advantage of credit terms, potentially impacting cash flow.
It would be valuable to complement this analysis with other financial ratios and qualitative information to gain a more comprehensive understanding of United Rentals, Inc.'s financial performance and operational efficiency.
Peer comparison
Dec 31, 2023