Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

United Rentals Inc., balance sheet: goodwill and intangible assets

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Goodwill	6,026)	5,528)	5,168)	5,154)	5,058)
Non-compete agreements	69)	65)	12)	24)	24)
Customer relationships	2,349)	2,389)	2,252)	2,246)	2,148)
Trade names and associated trademarks	14)	15)	8)	5)	5)
Other intangible assets, gross carrying amount	2,432)	2,469)	2,272)	2,275)	2,177)
Accumulated amortization	(1,980)	(1,854)	(1,624)	(1,380)	(1,093)
Other intangible assets, net carrying amount	452)	615)	648)	895)	1,084)
Goodwill and other intangible assets	6,478)	6,143)	5,816)	6,049)	6,142)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

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Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	United Rentals Inc. goodwill increased from 2020 to 2021 and from 2021 to 2022.
Goodwill and other intangible assets	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	United Rentals Inc. goodwill and other intangible assets increased from 2020 to 2021 and from 2021 to 2022.

United Rentals Inc., adjustments to financial statements

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Adjustment to Total Assets
Total assets (as reported)	24,183)	20,292)	17,868)	18,970)	18,133)
Less: Goodwill	6,026)	5,528)	5,168)	5,154)	5,058)
Total assets (adjusted)	18,157)	14,764)	12,700)	13,816)	13,075)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	7,062)	5,991)	4,545)	3,830)	3,403)
Less: Goodwill	6,026)	5,528)	5,168)	5,154)	5,058)
Stockholders’ equity (adjusted)	1,036)	463)	(623)	(1,324)	(1,655)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

United Rentals Inc., Financial Data: Reported vs. Adjusted

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United Rentals Inc., adjusted financial ratios

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Total Asset Turnover
Reported total asset turnover	0.48	0.48	0.48	0.49	0.44
Adjusted total asset turnover	0.64	0.66	0.67	0.68	0.62
Financial Leverage
Reported financial leverage	3.42	3.39	3.93	4.95	5.33
Adjusted financial leverage	17.53	31.89	—	—	—
Return on Equity (ROE)
Reported ROE	29.81%	23.13%	19.58%	30.65%	32.21%
Adjusted ROE	203.19%	299.35%	—	—	—
Return on Assets (ROA)
Reported ROA	8.70%	6.83%	4.98%	6.19%	6.04%
Adjusted ROA	11.59%	9.39%	7.01%	8.50%	8.38%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	United Rentals Inc. adjusted total asset turnover ratio deteriorated from 2020 to 2021 and from 2021 to 2022.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	United Rentals Inc. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.

United Rentals Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Revenues	11,642)	9,716)	8,530)	9,351)	8,047)
Total assets	24,183)	20,292)	17,868)	18,970)	18,133)
Activity Ratio
Total asset turnover¹	0.48	0.48	0.48	0.49	0.44
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenues	11,642)	9,716)	8,530)	9,351)	8,047)
Adjusted total assets	18,157)	14,764)	12,700)	13,816)	13,075)
Activity Ratio
Adjusted total asset turnover²	0.64	0.66	0.67	0.68	0.62

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ Total asset turnover = Revenues ÷ Total assets
= 11,642 ÷ 24,183 = 0.48

² Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 11,642 ÷ 18,157 = 0.64

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	United Rentals Inc. adjusted total asset turnover ratio deteriorated from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Total assets	24,183)	20,292)	17,868)	18,970)	18,133)
Stockholders’ equity	7,062)	5,991)	4,545)	3,830)	3,403)
Solvency Ratio
Financial leverage¹	3.42	3.39	3.93	4.95	5.33
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	18,157)	14,764)	12,700)	13,816)	13,075)
Adjusted stockholders’ equity	1,036)	463)	(623)	(1,324)	(1,655)
Solvency Ratio
Adjusted financial leverage²	17.53	31.89	—	—	—

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity
= 24,183 ÷ 7,062 = 3.42

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 18,157 ÷ 1,036 = 17.53

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	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income	2,105)	1,386)	890)	1,174)	1,096)
Stockholders’ equity	7,062)	5,991)	4,545)	3,830)	3,403)
Profitability Ratio
ROE¹	29.81%	23.13%	19.58%	30.65%	32.21%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income	2,105)	1,386)	890)	1,174)	1,096)
Adjusted stockholders’ equity	1,036)	463)	(623)	(1,324)	(1,655)
Profitability Ratio
Adjusted ROE²	203.19%	299.35%	—	—	—

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 2,105 ÷ 7,062 = 29.81%

² Adjusted ROE = 100 × Net income ÷ Adjusted stockholders’ equity
= 100 × 2,105 ÷ 1,036 = 203.19%

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	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income	2,105)	1,386)	890)	1,174)	1,096)
Total assets	24,183)	20,292)	17,868)	18,970)	18,133)
Profitability Ratio
ROA¹	8.70%	6.83%	4.98%	6.19%	6.04%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income	2,105)	1,386)	890)	1,174)	1,096)
Adjusted total assets	18,157)	14,764)	12,700)	13,816)	13,075)
Profitability Ratio
Adjusted ROA²	11.59%	9.39%	7.01%	8.50%	8.38%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 2,105 ÷ 24,183 = 8.70%

² Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 2,105 ÷ 18,157 = 11.59%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	United Rentals Inc. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.

United Rentals Inc. (NYSE:URI)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

United Rentals Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

United Rentals Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)