United Rentals Inc (URI)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 4,065,000 | 3,827,000 | 3,232,000 | 2,277,000 | 1,800,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 8,622,000 | 8,130,000 | 7,062,000 | 5,991,000 | 4,545,000 |
| Return on total capital | 47.15% | 47.07% | 45.77% | 38.01% | 39.60% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $4,065,000K ÷ ($—K + $8,622,000K)
= 47.15%
United Rentals Inc has shown a consistently strong return on total capital over the past five years, starting at 39.60% in December 2020 and gradually increasing to 47.15% by December 2024. This indicates the company's ability to generate significant profits relative to the total capital invested in its operations. The upward trend in return on total capital suggests that United Rentals Inc has been effectively utilizing its capital resources to generate higher returns for its shareholders. Overall, the company's strong performance in this metric reflects its efficient capital management and profitability over the specified period.
Peer comparison
Dec 31, 2024