United Rentals Inc (URI)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 40.08% | 40.56% | 42.91% | 39.66% | 37.32% |
| Operating profit margin | 26.49% | 26.70% | 27.76% | 23.44% | 21.10% |
| Pretax margin | 22.08% | 22.40% | 24.07% | 19.00% | 13.35% |
| Net profit margin | 16.78% | 16.91% | 18.08% | 14.27% | 10.43% |
United Rentals Inc has shown a steady improvement in its profitability margins over the five-year period from 2020 to 2024.
The Gross Profit Margin has increased from 37.32% in 2020 to 40.08% in 2024, indicating that the company has become more efficient in managing its cost of goods sold and generating gross profit from its revenue.
The Operating Profit Margin has also shown a positive trend, rising from 21.10% in 2020 to 26.49% in 2024. This signifies that United Rentals Inc has been able to control its operating expenses effectively while increasing its operating income.
Furthermore, the Pretax Margin has increased significantly from 13.35% in 2020 to 22.08% in 2024. This improvement reflects the company's ability to generate higher profits before accounting for taxes on its revenue.
Finally, the Net Profit Margin has also shown a positive trajectory, climbing from 10.43% in 2020 to 16.78% in 2024. This indicates that after accounting for all expenses, including taxes, United Rentals Inc has been successful in increasing its net profit relative to its revenue.
Overall, United Rentals Inc's profitability ratios demonstrate a consistent positive trend, highlighting the company's efficiency in managing its costs and increasing its profitability over the five-year period.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 14.43% | 14.96% | 13.36% | 11.22% | 10.07% |
| Return on assets (ROA) | 9.14% | 9.47% | 8.70% | 6.83% | 4.98% |
| Return on total capital | 47.15% | 47.07% | 45.77% | 38.01% | 39.60% |
| Return on equity (ROE) | 29.87% | 29.82% | 29.81% | 23.13% | 19.58% |
United Rentals Inc has shown a consistent improvement in its profitability ratios over the years. The Operating Return on Assets (Operating ROA) has increased from 10.07% in 2020 to 14.43% in 2024, indicating the company's ability to generate operating profits from its assets has been improving steadily.
Similarly, the Return on Assets (ROA) has shown an upward trend, increasing from 4.98% in 2020 to 9.14% in 2024. This ratio reflects the overall efficiency of the company in generating profits from its total assets.
United Rentals Inc's Return on Total Capital has also displayed a positive trajectory, rising from 39.60% in 2020 to 47.15% in 2024. This indicates the company's effectiveness in generating returns for both its equity and debt holders.
Furthermore, the Return on Equity (ROE) has shown a consistent increase from 19.58% in 2020 to 29.87% in 2024, signifying an improvement in the company's ability to generate returns for its shareholders.
Overall, these profitability ratios demonstrate United Rentals Inc's strong operational performance and effective utilization of its assets and capital to generate sustainable returns for its investors.