United Rentals Inc (URI)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	6.51	6.25	6.53	6.54	6.43	6.10	6.17	6.10	5.81	5.75	6.12	6.34	5.79	5.75	6.29	6.75	6.49	6.58	7.35	6.62
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
Working capital turnover	—	—	—	—	—	—	—	36.27	41.88	176.54	75.65	—	—	—	—	51.91	67.17	—	—	42.93

Inventory Turnover Ratio:

United Rentals Inc's inventory turnover ratio has shown a fluctuating trend over the analyzed periods. The ratio was relatively high in the first half of the forecast period, indicating efficiency in managing and selling inventory. However, in recent quarters, the ratio has slightly decreased, suggesting a longer time taken to sell inventory on hand.

Receivables Turnover Ratio:

The receivables turnover ratio for United Rentals Inc has been relatively stable, hovering around a moderate level throughout the analyzed periods. This stability indicates that the company is efficiently collecting receivables from its customers.

Payables Turnover Ratio:

The payables turnover ratio for United Rentals Inc has experienced variability over the years. The ratio decreased initially, indicating a longer time taken to pay suppliers, which can sometimes suggest strained working capital management. However, there has been a slight improvement in recent periods.

Working Capital Turnover Ratio:

The working capital turnover ratio for United Rentals Inc has displayed a mixed performance. The data shows variations, with gaps in the availability of information for certain quarters. When observable, the ratios indicate the company's ability to generate revenue relative to its working capital levels. The significant fluctuations suggest changes in the efficiency of the company in utilizing its working capital to drive sales.

Average number of days

		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
Days of inventory on hand (DOH)	days	7.94	8.65	9.15	8.81	8.78	8.99	10.00	11.32	12.74	10.92	11.60	10.80	10.21	10.71	11.62	7.86	8.53	7.26	7.00	7.33
Days of sales outstanding (DSO)	days	56.06	58.39	55.92	55.78	56.79	59.79	59.18	59.86	62.83	63.47	59.68	57.60	63.00	63.43	58.00	54.09	56.27	55.50	49.68	55.11
Number of days of payables	days	29.69	49.85	56.34	40.64	38.78	50.14	63.75	56.96	62.55	64.26	62.09	49.94	50.80	68.19	59.90	38.76	31.81	36.38	20.66	30.87

United Rentals Inc's activity ratios provide insight into the efficiency of the company's operations.

1. Days of Inventory on Hand (DOH):
- United Rentals Inc's DOH fluctuated over the analyzed period, ranging from 7 to 12 days.
- The trend shows a slight increase towards the end of the period, indicating a longer holding period for inventory.
- The increase in DOH could suggest potential issues with inventory management or slower inventory turnover.

2. Days of Sales Outstanding (DSO):
- DSO for United Rentals Inc varied between 49 to 63 days during the period under review.
- The trend appears to be relatively stable, with minor fluctuations observed.
- A higher DSO may indicate slower collection of accounts receivable, which could impact the company's cash flow and liquidity.

3. Number of Days of Payables:
- The number of days of payables ranged from around 20 to 68 days for United Rentals Inc.
- The trend shows fluctuations, with periods of both shorter and longer payment cycles.
- A longer number of days of payables suggests the company taking longer to pay its suppliers, potentially impacting supplier relationships.

Overall, these activity ratios provide valuable insights into United Rentals Inc's inventory management, accounts receivable collection efficiency, and payment practices. Monitoring these ratios can help identify areas for improvement in operations and working capital management.

Long-term

	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
Fixed asset turnover	—	—	—	—	—	0.85	0.82	0.81	0.78	7.68	7.39	7.19	6.96	0.77	0.80	6.69	6.60	0.90	0.93	0.93
Total asset turnover	0.54	0.53	0.53	0.55	0.56	0.54	0.52	0.50	0.48	0.52	0.51	0.50	0.48	0.45	0.45	0.48	0.48	0.49	0.50	0.50

United Rentals Inc has shown fluctuations in its fixed asset turnover ratio over the past few years. The ratio was relatively low in the first half of 2020, around 0.90 to 0.93, indicating that the company was generating a lower level of revenue from its fixed assets during that time. However, this trend drastically changed in the second half of 2020 and continued to improve significantly throughout 2021 and 2022, reaching peak levels of 7.68 in September 2022. This suggests that United Rentals was able to generate a much higher level of revenue relative to its fixed assets during this period.

On the other hand, the total asset turnover ratio of United Rentals has been relatively stable, with slight fluctuations between 0.45 and 0.56 over the same period. This ratio represents the company's ability to generate sales from all its assets. Despite some variability, the total asset turnover ratio remained within a narrow range, indicating that the company's overall asset utilization was consistent.

In conclusion, United Rentals Inc has experienced significant improvements in its fixed asset turnover ratio, reflecting better efficiency in generating revenue from its fixed assets. The stability of the total asset turnover ratio indicates a consistent level of overall asset utilization efficiency during the period analyzed.