United Rentals Inc (URI)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	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	47.34	42.29	38.67	40.25
Receivables turnover	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	6.11	5.77	5.79	5.67
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
Working capital turnover	—	—	—	36.27	41.88	176.54	75.65	—	—	—	—	51.91	67.17	—	—	42.93	—	—	—	—

The activity ratios of United Rentals, Inc. provide insights into how efficiently the company manages its resources related to inventory, receivables, payables, and working capital.

Firstly, the inventory turnover ratio indicates that the company's inventory is turning over approximately 30 times a year, which suggests efficient management and a high demand for its products. The consistent improvement in this ratio over the periods indicates a positive trend in managing inventory.

Secondly, the receivables turnover ratio shows that the company collects its receivables approximately 6 times a year, indicating that it efficiently manages its credit sales and collection process. The relatively stable nature of this ratio suggests consistent sales and collection procedures.

Thirdly, the payables turnover ratio measures how quickly the company is paying its suppliers. The trend over time shows some fluctuation, but it seems that the company has been managing its payables effectively, with a notable increase in the most recent period.

Lastly, the working capital turnover ratio is not available for all periods, but the available data indicates that the company was able to turn over its working capital very efficiently in the earlier periods. However, this metric is not available in the recent quarters, making it difficult to assess the company's recent trend in this aspect.

In summary, United Rentals, Inc. demonstrates efficient management of inventory, receivables, and payables, as indicated by the upward trend in inventory turnover, stable receivables turnover, and improved payables turnover. However, the lack of data for the recent periods makes it challenging to evaluate the working capital turnover effectively.

Average number of days

		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
Days of inventory on hand (DOH)	days	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	7.71	8.63	9.44	9.07
Days of sales outstanding (DSO)	days	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	59.72	63.27	63.05	64.38
Number of days of payables	days	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	29.17	55.70	52.57	41.06

Days of Inventory on Hand (DOH):
The trend for DOH has been decreasing over the past eight quarters, from 17.67 days at the end of 2022 to 12.13 days at the end of 2023. This indicates that United Rentals has been more efficient in managing its inventory, needing fewer days to sell its inventory on hand.

Days of Sales Outstanding (DSO):
The trend for DSO has fluctuated but has remained relatively stable, with a slight decrease from 62.83 days at the end of 2022 to 56.79 days at the end of 2023. This indicates that the company's accounts receivable management has been consistent over the past few quarters.

Number of Days of Payables:
The trend for the number of days of payables has shown significant fluctuations, with an increase from 68.98 days at the end of 2022 to 88.25 days at the end of the third quarter of 2023, before decreasing to 53.55 days by the end of 2023. This suggests that the company has varied in its ability to manage its payables effectively, which can impact its cash flow and working capital management.

Overall, the decreasing trend in DOH and relatively stable DSO indicate efficient inventory and accounts receivable management. However, the fluctuating trend in the number of days of payables warrants further investigation into the company's management of payables and its impact on cash flow and liquidity.

Long-term

	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
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	15.48	0.86	0.85	0.84
Total asset turnover	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	0.49	0.47	0.46	0.45

The long-term activity ratios of United Rentals, Inc. indicate the efficiency with which the company utilizes its assets over an extended period. The fixed asset turnover ratio has fluctuated, with a slight increase from 0.82 in Dec 2022 to 0.96 in Dec 2023. This suggests that the company generated $0.96 in sales for every $1 of fixed assets during the most recent period.

The total asset turnover ratio, on the other hand, also experienced a slight increase from 0.48 in Dec 2022 to 0.56 in Dec 2023, indicating that the company generated $0.56 in sales for every $1 of total assets during the same period. This improvement may signal an enhancement in the company's overall asset management efficiency. However, it's important to note that a more thorough analysis of the company's financial statements and industry benchmarks would provide additional insight into the effectiveness of United Rentals, Inc.'s asset management.