United Rentals Inc (URI)

Working capital 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
Total current assets	US$ in thousands	2,933,000	2,978,000	2,838,000	2,622,000	2,723,000	2,327,000	2,164,000	2,010,000	2,151,000	2,200,000	2,154,000	2,004,000	2,017,000	1,728,000	1,622,000	2,214,000	1,842,000	1,881,000	1,840,000	1,720,000
Total current liabilities	US$ in thousands	3,637,000	3,673,000	3,810,000	2,280,000	2,445,000	2,264,000	2,023,000	2,597,000	2,603,000	2,752,000	2,544,000	1,841,000	1,890,000	1,916,000	1,921,000	1,996,000	2,198,000	2,643,000	2,535,000	2,238,000
Working capital turnover		—	—	—	36.27	41.88	176.54	75.65	—	—	—	—	51.91	67.17	—	—	42.93	—	—	—	—

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $14,332,000K ÷ ($2,933,000K – $3,637,000K)
= —

To analyze the working capital turnover of United Rentals, Inc., we can observe a significant fluctuation in the working capital turnover ratio over the provided periods. The working capital turnover ratio measures how effectively a company utilizes its working capital to generate sales revenue.

In the first three quarters of 2022, the working capital turnover ratio was notably high, with values of 176.54, 75.65, and 36.27, indicating that the company efficiently managed its working capital to support sales. However, the absence of data for the subsequent quarter limits a comprehensive analysis.

The sharp decline in the working capital turnover ratio from the third quarter of 2022 to the first quarter of 2023 may suggest a potential decrease in sales relative to the level of working capital during that period. Further information is required to understand the underlying reasons for such a change and its impact on the company's operations and financial performance.

It is essential to recognize that the working capital turnover ratio should be analyzed in conjunction with other financial metrics to gain a comprehensive understanding of United Rentals, Inc.'s financial health and operational efficiency.