United Rentals Inc (URI)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 4,065,000 | 3,827,000 | 3,232,000 | 2,277,000 | 1,800,000 |
| Total assets | US$ in thousands | 28,163,000 | 25,589,000 | 24,183,000 | 20,292,000 | 17,868,000 |
| Operating ROA | 14.43% | 14.96% | 13.36% | 11.22% | 10.07% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $4,065,000K ÷ $28,163,000K
= 14.43%
United Rentals Inc's operating return on assets (operating ROA) has shown a consistent positive trend over the past five years. Starting at 10.07% on December 31, 2020, it has steadily increased to 14.43% by December 31, 2024. This improvement indicates the company's ability to generate operating income from its assets more efficiently over time.
The rising trend in operating ROA suggests that United Rentals Inc has been effectively managing its assets to generate operating profits. This could be achieved through increased operational efficiency, better asset utilization, or strategic investment decisions.
The company's operating ROA exceeding 10% consistently over the years indicates that United Rentals Inc has been successful in generating a substantial return from its asset base. Investors and stakeholders may view this positively as it signifies the company's profitability and effectiveness in utilizing its assets to drive operating performance.
Overall, the upward trajectory of United Rentals Inc's operating ROA reflects a strong financial performance and efficient management of assets, potentially enhancing investor confidence in the company's operational strength and sustainability.
Peer comparison
Dec 31, 2024