United Rentals Inc (URI)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 4,065,000 | 4,041,000 | 4,018,000 | 3,939,000 | 3,827,000 | 3,788,000 | 3,610,000 | 3,400,000 | 3,232,000 | 2,953,000 | 2,711,000 | 2,477,000 | 2,277,000 | 2,042,000 | 1,914,000 | 1,814,000 | 1,800,000 | 1,889,000 | 1,994,000 | 2,142,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 8,622,000 | 8,581,000 | 8,281,000 | 8,120,000 | 8,130,000 | 7,756,000 | 7,414,000 | 7,130,000 | 7,062,000 | 6,353,000 | 6,046,000 | 6,084,000 | 5,991,000 | 5,483,000 | 5,094,000 | 4,745,000 | 4,545,000 | 4,161,000 | 3,907,000 | 3,635,000 |
| Return on total capital | 47.15% | 47.09% | 48.52% | 48.51% | 47.07% | 48.84% | 48.69% | 47.69% | 45.77% | 46.48% | 44.84% | 40.71% | 38.01% | 37.24% | 37.57% | 38.23% | 39.60% | 45.40% | 51.04% | 58.93% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $4,065,000K ÷ ($—K + $8,622,000K)
= 47.15%
United Rentals Inc has shown a stable and favorable trend in its return on total capital over the analyzed period. The return on total capital figures started at 58.93% as of March 31, 2020, and gradually decreased to 37.57% by June 30, 2021. However, from that point onwards, the return on total capital started to increase consistently, reaching 48.52% by June 30, 2024, with a slight dip in the following quarter.
Overall, the return on total capital for United Rentals Inc remained above 45% throughout most of the period, indicating the company's ability to generate profits relative to its total capital employed. This demonstrates efficient capital allocation and operational performance, reflecting positively on the company's financial health and management's effectiveness in utilizing its capital resources.
Peer comparison
Dec 31, 2024