United Rentals Inc (URI)

Receivables 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
Revenue (ttm)	US$ in thousands	14,332,000	13,900,000	13,186,000	12,403,000	11,642,000	11,122,000	10,667,000	10,183,000	9,716,000	9,219,000	8,810,000	8,462,000	8,530,000	8,707,000	9,008,000	9,359,000	9,351,000	9,201,000	8,829,000	8,430,000
Receivables	US$ in thousands	2,230,000	2,277,000	2,138,000	2,034,000	2,004,000	1,934,000	1,744,000	1,607,000	1,677,000	1,602,000	1,400,000	1,254,000	1,315,000	1,324,000	1,226,000	1,413,000	1,530,000	1,595,000	1,525,000	1,487,000
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

December 31, 2023 calculation

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

The receivables turnover ratio measures the efficiency of United Rentals, Inc. in collecting payments from its customers. A higher receivables turnover indicates that the company is collecting payments more effectively.

Looking at the data, the receivables turnover ratio has shown a generally increasing trend over the past eight quarters, indicating improved efficiency in collecting receivables. The ratio ranged from 5.75 to 6.43 during this period.

The increase in the receivables turnover ratio signifies that United Rentals, Inc. has been able to convert its accounts receivable into cash at a faster rate, which can be a positive indicator of the company's liquidity and effective credit management.

Overall, the trend in the receivables turnover ratio suggests that United Rentals, Inc. has been successful in managing its receivables and collecting payments from its customers in a timely manner.