Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
United Rentals Inc., long-term (investment) activity ratios
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).
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | United Rentals Inc. net fixed asset turnover ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | United Rentals Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2020 to 2021 and from 2021 to 2022. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | United Rentals Inc. total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | United Rentals Inc. equity turnover ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |
Net Fixed Asset Turnover
United Rentals Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 11,642) | 9,716) | 8,530) | 9,351) | 8,047) | |
| Property and equipment (rental and non-rental), net | 14,116) | 11,172) | 9,309) | 10,391) | 10,214) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 0.82 | 0.87 | 0.92 | 0.90 | 0.79 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Boeing Co. | 6.31 | 5.70 | 4.92 | 6.12 | — | |
| Caterpillar Inc. | 4.70 | 3.99 | 3.15 | 3.93 | — | |
| Eaton Corp. plc | 6.59 | 6.41 | 6.02 | 6.12 | — | |
| GE Aerospace | 5.96 | 5.47 | 1.75 | 2.02 | — | |
| Honeywell International Inc. | 6.48 | 6.18 | 5.86 | 6.89 | — | |
| Lockheed Martin Corp. | 8.27 | 8.83 | 9.07 | 9.07 | — | |
| RTX Corp. | 4.42 | 4.30 | 3.78 | 6.04 | — | |
| Net Fixed Asset Turnover, Sector | ||||||
| Capital Goods | 5.79 | 5.46 | 3.55 | 4.23 | — | |
| Net Fixed Asset Turnover, Industry | ||||||
| Industrials | 3.22 | 3.04 | 2.41 | 2.76 | — | |
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).
1 2022 Calculation
Net fixed asset turnover = Revenues ÷ Property and equipment (rental and non-rental), net
= 11,642 ÷ 14,116 = 0.82
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | United Rentals Inc. net fixed asset turnover ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
United Rentals Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 11,642) | 9,716) | 8,530) | 9,351) | 8,047) | |
| Property and equipment (rental and non-rental), net | 14,116) | 11,172) | 9,309) | 10,391) | 10,214) | |
| Operating lease right-of-use assets | 819) | 784) | 688) | 669) | —) | |
| Property and equipment (rental and non-rental), net (including operating lease, right-of-use asset) | 14,935) | 11,956) | 9,997) | 11,060) | 10,214) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 0.78 | 0.81 | 0.85 | 0.85 | 0.79 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Boeing Co. | 5.55 | 5.04 | 4.45 | 5.59 | — | |
| Caterpillar Inc. | 4.49 | 3.79 | 3.00 | 3.75 | — | |
| Eaton Corp. plc | 5.58 | 5.60 | 5.26 | 5.44 | — | |
| GE Aerospace | 5.08 | 4.55 | 1.63 | 1.89 | — | |
| Honeywell International Inc. | 5.58 | 5.28 | 5.15 | 6.12 | — | |
| Lockheed Martin Corp. | 7.27 | 7.54 | 7.96 | 7.88 | — | |
| RTX Corp. | 3.95 | 3.80 | 3.36 | 5.02 | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Capital Goods | 5.13 | 4.80 | 3.25 | 3.86 | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Industrials | 2.77 | 2.62 | 2.13 | 2.57 | — | |
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).
1 2022 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenues ÷ Property and equipment (rental and non-rental), net (including operating lease, right-of-use asset)
= 11,642 ÷ 14,935 = 0.78
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | United Rentals Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2020 to 2021 and from 2021 to 2022. |
Total Asset Turnover
United Rentals Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| 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) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.48 | 0.48 | 0.48 | 0.49 | 0.44 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Boeing Co. | 0.49 | 0.45 | 0.38 | 0.57 | — | |
| Caterpillar Inc. | 0.69 | 0.58 | 0.50 | 0.65 | — | |
| Eaton Corp. plc | 0.59 | 0.58 | 0.56 | 0.65 | — | |
| GE Aerospace | 0.39 | 0.36 | 0.29 | 0.33 | — | |
| Honeywell International Inc. | 0.57 | 0.53 | 0.51 | 0.63 | — | |
| Lockheed Martin Corp. | 1.25 | 1.32 | 1.29 | 1.26 | — | |
| RTX Corp. | 0.42 | 0.40 | 0.35 | 0.55 | — | |
| Total Asset Turnover, Sector | ||||||
| Capital Goods | 0.54 | 0.50 | 0.43 | 0.54 | — | |
| Total Asset Turnover, Industry | ||||||
| Industrials | 0.66 | 0.60 | 0.51 | 0.61 | — | |
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).
1 2022 Calculation
Total asset turnover = Revenues ÷ Total assets
= 11,642 ÷ 24,183 = 0.48
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | United Rentals Inc. total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022. |
Equity Turnover
United Rentals Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 11,642) | 9,716) | 8,530) | 9,351) | 8,047) | |
| Stockholders’ equity | 7,062) | 5,991) | 4,545) | 3,830) | 3,403) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 1.65 | 1.62 | 1.88 | 2.44 | 2.36 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 3.57 | 2.92 | 2.55 | 3.48 | — | |
| Eaton Corp. plc | 1.22 | 1.20 | 1.20 | 1.33 | — | |
| GE Aerospace | 2.02 | 1.76 | 2.05 | 3.09 | — | |
| Honeywell International Inc. | 2.12 | 1.85 | 1.86 | 1.98 | — | |
| Lockheed Martin Corp. | 7.12 | 6.12 | 10.87 | 19.13 | — | |
| RTX Corp. | 0.92 | 0.88 | 0.78 | 1.84 | — | |
| Equity Turnover, Sector | ||||||
| Capital Goods | 2.54 | 2.28 | 2.39 | 3.60 | — | |
| Equity Turnover, Industry | ||||||
| Industrials | 2.94 | 2.58 | 2.75 | 3.53 | — | |
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).
1 2022 Calculation
Equity turnover = Revenues ÷ Stockholders’ equity
= 11,642 ÷ 7,062 = 1.65
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | United Rentals Inc. equity turnover ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |