United Rentals Inc (URI)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 3,827,000 | 3,232,000 | 2,277,000 | 1,800,000 | 2,152,000 |
| Total assets | US$ in thousands | 25,589,000 | 24,183,000 | 20,292,000 | 17,868,000 | 18,970,000 |
| Operating ROA | 14.96% | 13.36% | 11.22% | 10.07% | 11.34% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $3,827,000K ÷ $25,589,000K
= 14.96%
United Rentals, Inc.'s operating return on assets (operating ROA) has shown a positive trend over the past five years. The operating ROA increased from 11.44% in 2019 to 15.07% in 2023. This indicates that the company has been effectively generating operating profits relative to its total assets. The consistent improvement in operating ROA suggests that the company has been able to efficiently utilize its assets to generate operating income, which is a positive signal for the company's operational efficiency and profitability. This trend may reflect effective cost management and revenue generation strategies, as well as potentially efficient asset utilization. However, it is important to consider the industry benchmarks and compare the company's performance with its peers to gain a comprehensive understanding of its operating ROA performance.
Peer comparison
Dec 31, 2023