United Rentals Inc (URI)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	14,332,000	11,642,000	9,716,000	8,530,000	9,351,000
Receivables	US$ in thousands	2,230,000	2,004,000	1,677,000	1,315,000	1,530,000
Receivables turnover		6.43	5.81	5.79	6.49	6.11

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $14,332,000K ÷ $2,230,000K
= 6.43

The receivables turnover, a key indicator of how efficiently a company is managing its accounts receivable, shows the number of times a company collects its average accounts receivable balance during a specific period. United Rentals, Inc.'s receivables turnover has fluctuated in recent years, with a ratio of 6.43 in 2023, 5.81 in 2022, 5.79 in 2021, 6.49 in 2020, and 6.11 in 2019.

The increase in the receivables turnover from 2022 to 2023 indicates that the company was collecting its accounts receivable more frequently, which can signify an improvement in its collection process and liquidity. However, it's important to note that a higher turnover may also suggest a more conservative credit policy, which could potentially impact sales. Conversely, the fluctuations over the years may indicate changes in the company's credit policy or the nature of its customer base.

In summary, United Rentals, Inc.'s receivables turnover has shown variability over the years, and further analysis is needed to understand the underlying factors influencing these fluctuations.