United Rentals Inc (URI)

Total asset 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
Total assets	US$ in thousands	25,589,000	24,183,000	20,292,000	17,868,000	18,970,000
Total asset turnover		0.56	0.48	0.48	0.48	0.49

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $14,332,000K ÷ $25,589,000K
= 0.56

The total asset turnover ratio measures how efficiently a company utilizes its assets to generate revenue. For United Rentals, Inc., the total asset turnover has fluctuated over the past five years, ranging from 0.48 to 0.56. This ratio indicates that for every dollar of assets, the company generated $0.48 to $0.56 in sales.

The improvement in the total asset turnover from 2022 to 2023 suggests that United Rentals became more efficient in utilizing its assets to generate sales revenue. However, it is important to note that a higher total asset turnover ratio does not necessarily always indicate better performance, as it can be influenced by various factors such as industry norms, asset composition, and business strategy.

Overall, United Rentals, Inc. should continue monitoring and improving its total asset turnover to ensure optimal utilization of its assets to drive sales and profitability.