Common-Size Income Statement
Paying user area
Try for free
United Rentals Inc. pages available for free this week:
- Statement of Comprehensive Income
- Cash Flow Statement
- Analysis of Profitability Ratios
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Dividend Discount Model (DDM)
- Current Ratio since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Debt
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to United Rentals Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
United Rentals Inc., common-size consolidated income statement
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).
- Revenue Composition and Trends
- The largest component of revenue consistently derives from equipment rentals, accounting for approximately 83.7% to 86.9% over the five-year span. This segment experienced a relative decline in 2020 before rebounding in subsequent years. Sales of rental equipment showed a modest increase from 8.25% in 2018 to a peak around 10.06% in 2020, followed by a decline. Sales of new equipment demonstrated a decreasing trend from 2.58% in 2018 to 1.32% in 2022, indicating shrinking reliance on this source. Contractor supplies sales remained relatively stable at around 1.1%. Service and other revenues increased steadily from 1.79% to 2.41% of revenues, suggesting expansion in auxiliary service offerings.
- Cost Structure and Profitability
- The cost of equipment rentals, excluding depreciation, rose gradually from -32.48% in 2018 to -34.51% in 2022, indicating increasing expenses relative to revenue. Depreciation of rental equipment peaked at -18.77% in 2020 but declined thereafter to -15.92%, reflecting possible changes in asset base or depreciation methods. Costs associated with rental equipment sales increased until 2020 then declined sharply by 2022, implying efficiency improvements or reduced sales volume. Costs related to new equipment sales and contractor supplies also showed downward trends. Overall cost of revenues fluctuated but decreased notably from -62.68% in 2020 to -57.09% in 2022, enhancing gross profitability.
- Gross Profit and Operating Expenses
- Gross profit margins followed a U-shaped pattern with a low in 2020 at 37.32%, rising consistently to 42.91% by 2022, indicating improved cost control or pricing power post-2020. Selling, general, and administrative expenses as a percentage of revenue fluctuated moderately but generally stayed between -11.48% and -12.9%. Merger-related and restructuring charges were minimal and declining, suggesting reduced one-time charges over time. Non-rental depreciation and amortization gradually declined from -3.83% to -3.13%, contributing positively to operating margin trends.
- Operating Income and Financial Performance
- Operating income showed resilience, declining from 24.25% in 2018 to a low of 21.1% in 2020 before rebounding strongly to 27.76% by 2022, highlighting enhanced operational efficiency or revenue quality. Interest expense as a percentage of revenue trended downward significantly from -5.98% in 2018 to -3.82% in 2022, reflecting improved financing costs or lower debt levels. Other income (expense) remained negligible and variable. Income before taxes mirrored operating income trends with a trough in 2020 and strong growth thereafter.
- Net Income and Taxation
- The provision for income taxes as a percentage of revenue decreased until 2020 but increased in the last two years, peaking at -5.99% in 2022, possibly due to changes in tax rates or earnings composition. Net income margins declined to 10.43% in 2020 but rebounded robustly to 18.08% in 2022, indicating overall growth in profitability and effective cost management.