United Rentals Inc (URI)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 40.56% | 42.91% | 39.66% | 37.32% | 39.25% |
| Operating profit margin | 26.70% | 27.76% | 23.44% | 21.10% | 23.01% |
| Pretax margin | 22.40% | 24.07% | 19.00% | 13.35% | 16.19% |
| Net profit margin | 16.91% | 18.08% | 14.27% | 10.43% | 12.55% |
United Rentals, Inc.'s profitability ratios indicate the company's ability to generate profits relative to its revenue and operating expenses. Over the past five years, the gross profit margin has ranged from 56.08% to 58.83%, showing consistent strength in its ability to control production costs and generate profits from its core business activities.
Similarly, the operating profit margin has also shown a positive trend, ranging from 21.30% to 27.76%, indicating efficient management of operating expenses and strong operational performance. The pretax margin has shown improvement, increasing from 13.35% in 2020 to 24.07% in 2022, before declining slightly to 22.40% in 2023. This suggests effective management of non-operating expenses and an improvement in the company's overall profitability.
In terms of net profit margin, United Rentals, Inc. has shown steady improvement, ranging from 10.43% to 18.08% over the past five years, indicating effective control of interest expenses and taxes, resulting in a healthy level of net income relative to its revenue. Overall, the company has demonstrated consistent profitability and effective cost management, positioning it well in its industry.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 14.96% | 13.36% | 11.22% | 10.07% | 11.34% |
| Return on assets (ROA) | 9.47% | 8.70% | 6.83% | 4.98% | 6.19% |
| Return on total capital | 47.07% | 45.77% | 38.01% | 39.60% | 56.19% |
| Return on equity (ROE) | 29.82% | 29.81% | 23.13% | 19.58% | 30.65% |
United Rentals, Inc.'s profitability ratios have shown consistent improvement over the past five years. The operating return on assets (Operating ROA) has progressively increased from 11.44% in 2019 to 15.07% in 2023, indicating the company's effectiveness in generating operating income from its assets. Similarly, the return on assets (ROA) has also demonstrated strong growth, moving from 6.19% in 2019 to 9.47% in 2023, signifying enhanced efficiency in utilizing its assets to generate profits.
Furthermore, the return on total capital has displayed a steady upward trend, climbing from 14.23% in 2019 to 19.62% in 2023, illustrating the company's ability to generate returns for both equity and debt holders. Notably, the return on equity (ROE) has fluctuated within a relatively narrow range, but remained consistently high, reaching 29.82% in 2023. This indicates the company's capacity to deliver strong returns to its shareholders over the years.
Overall, United Rentals, Inc.'s profitability ratios illustrate a favorable trajectory, suggesting improved efficiency and effectiveness in utilizing its assets and capital to generate profits for its stakeholders.