Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
United Rentals Inc., short-term (operating) activity ratios (quarterly data)
Based on: 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | United Rentals Inc. inventory turnover ratio improved from Q2 2022 to Q3 2022 but then deteriorated significantly from Q3 2022 to Q4 2022. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | United Rentals Inc. receivables turnover ratio deteriorated from Q2 2022 to Q3 2022 but then slightly improved from Q3 2022 to Q4 2022. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | United Rentals Inc. payables turnover ratio decreased from Q2 2022 to Q3 2022 but then increased from Q3 2022 to Q4 2022 not reaching Q2 2022 level. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | United Rentals Inc. working capital turnover ratio improved from Q2 2022 to Q3 2022 but then deteriorated significantly from Q3 2022 to Q4 2022. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | United Rentals Inc. number of days of inventory outstanding improved from Q2 2022 to Q3 2022 but then deteriorated significantly from Q3 2022 to Q4 2022. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | United Rentals Inc. operating cycle deteriorated from Q2 2022 to Q3 2022 and from Q3 2022 to Q4 2022. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. |
Inventory Turnover
United Rentals Inc., inventory turnover calculation (quarterly data)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Cost of revenues | 1,808) | 1,685) | 1,621) | 1,532) | 1,615) | 1,493) | 1,412) | 1,343) | 1,410) | 1,301) | 1,238) | 1,398) | 1,491) | 1,455) | 1,379) | 1,356) | 1,308) | 1,178) | 1,109) | 1,088) | ||||||
| Inventory | 232) | 193) | 199) | 179) | 164) | 166) | 174) | 114) | 125) | 108) | 107) | 115) | 120) | 130) | 135) | 123) | 109) | 104) | 94) | 84) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Inventory turnover1 | 28.65 | 33.44 | 31.46 | 33.81 | 35.75 | 34.08 | 31.41 | 46.42 | 42.78 | 50.26 | 52.17 | 49.77 | 47.34 | 42.29 | 38.67 | 40.25 | 42.96 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Inventory Turnover, Competitors2 | ||||||||||||||||||||||||||
| Boeing Co. | 0.81 | 0.78 | 0.74 | 0.74 | 0.75 | 0.77 | 0.76 | 0.74 | 0.78 | 0.71 | 0.78 | 0.88 | 0.94 | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 2.54 | 2.36 | 2.40 | 2.46 | 2.53 | 2.44 | 2.49 | 2.46 | 2.55 | 2.66 | 2.82 | 2.97 | 3.25 | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 4.04 | 3.95 | 3.87 | 4.03 | 4.48 | 4.73 | 4.86 | 5.12 | 5.88 | 6.10 | 6.20 | 6.00 | 5.11 | — | — | — | — | — | — | — | ||||||
| GE Aerospace | 3.19 | 3.10 | 3.04 | 3.25 | 3.40 | 3.21 | 3.28 | 3.46 | 3.80 | 4.36 | 4.41 | 4.50 | 4.97 | — | — | — | — | — | — | — | ||||||
| Honeywell International Inc. | 4.04 | 4.09 | 4.06 | 4.20 | 4.55 | 4.72 | 4.88 | 4.85 | 4.94 | 4.79 | 4.88 | 5.23 | 5.51 | — | — | — | — | — | — | — | ||||||
| Lockheed Martin Corp. | 18.68 | 18.09 | 16.20 | 18.12 | 19.45 | 19.81 | 18.64 | 17.58 | 16.01 | 16.91 | 15.46 | 14.94 | 14.22 | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 5.03 | 5.03 | 5.14 | 5.33 | 5.65 | 5.57 | 5.49 | 5.48 | 5.11 | 4.93 | 4.85 | 4.51 | 5.21 | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q4 2022 Calculation
Inventory turnover
= (Cost of revenuesQ4 2022
+ Cost of revenuesQ3 2022
+ Cost of revenuesQ2 2022
+ Cost of revenuesQ1 2022)
÷ Inventory
= (1,808 + 1,685 + 1,621 + 1,532)
÷ 232 = 28.65
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | United Rentals Inc. inventory turnover ratio improved from Q2 2022 to Q3 2022 but then deteriorated significantly from Q3 2022 to Q4 2022. |
Receivables Turnover
United Rentals Inc., receivables turnover calculation (quarterly data)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Revenues | 3,296) | 3,051) | 2,771) | 2,524) | 2,776) | 2,596) | 2,287) | 2,057) | 2,279) | 2,187) | 1,939) | 2,125) | 2,456) | 2,488) | 2,290) | 2,117) | 2,306) | 2,116) | 1,891) | 1,734) | ||||||
| Accounts receivable, net | 2,004) | 1,934) | 1,744) | 1,607) | 1,677) | 1,602) | 1,400) | 1,254) | 1,315) | 1,324) | 1,226) | 1,413) | 1,530) | 1,595) | 1,525) | 1,487) | 1,545) | 1,438) | 1,203) | 1,154) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Receivables turnover1 | 5.81 | 5.75 | 6.12 | 6.34 | 5.79 | 5.75 | 6.29 | 6.75 | 6.49 | 6.58 | 7.35 | 6.62 | 6.11 | 5.77 | 5.79 | 5.67 | 5.21 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | ||||||||||||||||||||||||||
| Boeing Co. | 26.46 | 22.98 | 20.27 | 25.37 | 23.58 | 27.95 | 24.76 | 23.97 | 29.75 | 22.00 | 23.85 | 21.97 | 23.44 | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 6.39 | 6.59 | 6.10 | 5.46 | 5.68 | 5.97 | 5.51 | 5.07 | 5.33 | 5.86 | 6.11 | 6.12 | 5.92 | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 5.09 | 5.28 | 5.15 | 5.39 | 5.95 | 5.75 | 5.72 | 5.79 | 6.15 | 6.40 | 7.25 | 7.07 | 6.22 | — | — | — | — | — | — | — | ||||||
| GE Aerospace | 4.09 | 4.19 | 4.39 | 4.43 | 4.55 | 4.83 | 4.74 | 4.59 | 4.37 | 4.46 | 5.03 | 5.08 | 5.22 | — | — | — | — | — | — | — | ||||||
| Honeywell International Inc. | 4.77 | 4.74 | 4.45 | 4.82 | 5.04 | 4.78 | 4.89 | 4.89 | 4.78 | 4.83 | 5.14 | 4.87 | 4.90 | — | — | — | — | — | — | — | ||||||
| Lockheed Martin Corp. | 26.34 | 26.06 | 18.87 | 26.02 | 34.15 | 29.27 | 25.59 | 29.81 | 33.06 | 25.90 | 22.19 | 21.14 | 25.59 | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 7.36 | 7.15 | 6.28 | 7.15 | 6.66 | 6.69 | 6.99 | 6.03 | 6.11 | 5.90 | 6.79 | 5.35 | 5.70 | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q4 2022 Calculation
Receivables turnover
= (RevenuesQ4 2022
+ RevenuesQ3 2022
+ RevenuesQ2 2022
+ RevenuesQ1 2022)
÷ Accounts receivable, net
= (3,296 + 3,051 + 2,771 + 2,524)
÷ 2,004 = 5.81
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | United Rentals Inc. receivables turnover ratio deteriorated from Q2 2022 to Q3 2022 but then slightly improved from Q3 2022 to Q4 2022. |
Payables Turnover
United Rentals Inc., payables turnover calculation (quarterly data)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Cost of revenues | 1,808) | 1,685) | 1,621) | 1,532) | 1,615) | 1,493) | 1,412) | 1,343) | 1,410) | 1,301) | 1,238) | 1,398) | 1,491) | 1,455) | 1,379) | 1,356) | 1,308) | 1,178) | 1,109) | 1,088) | ||||||
| Accounts payable | 1,139) | 1,136) | 1,065) | 828) | 816) | 1,057) | 897) | 562) | 466) | 541) | 316) | 484) | 454) | 839) | 752) | 557) | 536) | 688) | 859) | 513) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Payables turnover1 | 5.83 | 5.68 | 5.88 | 7.31 | 7.19 | 5.35 | 6.09 | 9.42 | 11.47 | 10.03 | 17.66 | 11.82 | 12.51 | 6.55 | 6.94 | 8.89 | 8.74 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Payables Turnover, Competitors2 | ||||||||||||||||||||||||||
| Boeing Co. | 6.18 | 6.36 | 6.17 | 6.73 | 6.40 | 6.20 | 5.45 | 4.90 | 4.94 | 4.25 | 4.77 | 4.69 | 4.63 | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 4.76 | 4.81 | 4.72 | 4.43 | 4.36 | 4.61 | 4.57 | 4.46 | 4.75 | 5.86 | 6.31 | 6.05 | 6.15 | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 4.51 | 4.61 | 4.43 | 4.67 | 4.75 | 5.11 | 5.22 | 5.66 | 6.24 | 7.15 | 8.18 | 7.88 | 6.78 | — | — | — | — | — | — | — | ||||||
| GE Aerospace | 2.98 | 3.14 | 3.14 | 3.32 | 3.32 | 3.33 | 3.35 | 3.56 | 3.67 | 4.67 | 4.99 | 4.57 | 4.40 | — | — | — | — | — | — | — | ||||||
| Honeywell International Inc. | 3.53 | 3.68 | 3.63 | 3.66 | 3.61 | 3.83 | 3.76 | 3.86 | 3.86 | 4.27 | 4.32 | 4.23 | 4.25 | — | — | — | — | — | — | — | ||||||
| Lockheed Martin Corp. | 27.25 | 21.48 | 24.07 | 21.92 | 74.34 | 37.83 | 36.15 | 30.31 | 64.48 | 37.34 | 37.46 | 16.70 | 40.16 | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 5.40 | 5.82 | 5.36 | 6.28 | 5.93 | 6.06 | 6.52 | 5.67 | 5.56 | 5.96 | 6.92 | 4.73 | 5.28 | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q4 2022 Calculation
Payables turnover
= (Cost of revenuesQ4 2022
+ Cost of revenuesQ3 2022
+ Cost of revenuesQ2 2022
+ Cost of revenuesQ1 2022)
÷ Accounts payable
= (1,808 + 1,685 + 1,621 + 1,532)
÷ 1,139 = 5.83
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | United Rentals Inc. payables turnover ratio decreased from Q2 2022 to Q3 2022 but then increased from Q3 2022 to Q4 2022 not reaching Q2 2022 level. |
Working Capital Turnover
United Rentals Inc., working capital turnover calculation (quarterly data)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Current assets | 2,723) | 2,327) | 2,164) | 2,010) | 2,151) | 2,200) | 2,154) | 2,004) | 2,017) | 1,728) | 1,622) | 2,214) | 1,842) | 1,881) | 1,840) | 1,720) | 1,761) | 1,692) | 1,506) | 1,590) | ||||||
| Less: Current liabilities | 2,445) | 2,264) | 2,023) | 2,597) | 2,603) | 2,752) | 2,544) | 1,841) | 1,890) | 1,916) | 1,921) | 1,996) | 2,198) | 2,643) | 2,535) | 2,238) | 2,116) | 2,087) | 2,229) | 1,641) | ||||||
| Working capital | 278) | 63) | 141) | (587) | (452) | (552) | (390) | 163) | 127) | (188) | (299) | 218) | (356) | (762) | (695) | (518) | (355) | (395) | (723) | (51) | ||||||
| Revenues | 3,296) | 3,051) | 2,771) | 2,524) | 2,776) | 2,596) | 2,287) | 2,057) | 2,279) | 2,187) | 1,939) | 2,125) | 2,456) | 2,488) | 2,290) | 2,117) | 2,306) | 2,116) | 1,891) | 1,734) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Working capital turnover1 | 41.88 | 176.54 | 75.65 | — | — | — | — | 51.91 | 67.17 | — | — | 42.93 | — | — | — | — | — | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | ||||||||||||||||||||||||||
| Boeing Co. | 3.42 | 3.13 | 2.87 | 2.51 | 2.34 | 2.02 | 2.00 | 1.88 | 1.69 | 1.57 | 1.76 | 4.27 | 15.57 | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 4.62 | 4.35 | 3.93 | 3.83 | 3.54 | 2.87 | 2.80 | 2.52 | 2.84 | 3.01 | 3.45 | 4.33 | 4.04 | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 8.70 | 10.69 | — | — | 65.65 | 12.41 | 21.65 | 5.34 | 5.42 | 6.42 | 7.05 | 5.60 | 5.95 | — | — | — | — | — | — | — | ||||||
| GE Aerospace | 7.93 | 13.29 | 10.55 | 7.14 | 4.94 | 1.57 | 1.57 | 1.27 | 2.26 | 5.06 | 6.05 | 8.72 | — | — | — | — | — | — | — | — | ||||||
| Honeywell International Inc. | 7.03 | 7.91 | 8.84 | 8.07 | 5.86 | 5.94 | 4.52 | 4.27 | 3.64 | 3.02 | 3.14 | 6.93 | 5.92 | — | — | — | — | — | — | — | ||||||
| Lockheed Martin Corp. | 12.93 | 14.03 | 14.28 | 15.14 | 11.52 | 10.48 | 12.30 | 11.93 | 12.01 | 12.62 | 13.44 | 17.12 | 19.15 | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 20.15 | 19.15 | 17.77 | 11.41 | 9.75 | 8.11 | 10.24 | 9.77 | 7.52 | 7.51 | 9.23 | 9.50 | 26.47 | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q4 2022 Calculation
Working capital turnover
= (RevenuesQ4 2022
+ RevenuesQ3 2022
+ RevenuesQ2 2022
+ RevenuesQ1 2022)
÷ Working capital
= (3,296 + 3,051 + 2,771 + 2,524)
÷ 278 = 41.88
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | United Rentals Inc. working capital turnover ratio improved from Q2 2022 to Q3 2022 but then deteriorated significantly from Q3 2022 to Q4 2022. |
Average Inventory Processing Period
United Rentals Inc., average inventory processing period calculation (quarterly data)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||
| Inventory turnover | 28.65 | 33.44 | 31.46 | 33.81 | 35.75 | 34.08 | 31.41 | 46.42 | 42.78 | 50.26 | 52.17 | 49.77 | 47.34 | 42.29 | 38.67 | 40.25 | 42.96 | — | — | — | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||
| Average inventory processing period1 | 13 | 11 | 12 | 11 | 10 | 11 | 12 | 8 | 9 | 7 | 7 | 7 | 8 | 9 | 9 | 9 | 8 | — | — | — | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | ||||||||||||||||||||||||||
| Boeing Co. | 452 | 468 | 494 | 493 | 486 | 475 | 478 | 496 | 467 | 516 | 468 | 416 | 388 | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 144 | 155 | 152 | 148 | 144 | 150 | 146 | 149 | 143 | 137 | 129 | 123 | 112 | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 90 | 92 | 94 | 90 | 82 | 77 | 75 | 71 | 62 | 60 | 59 | 61 | 71 | — | — | — | — | — | — | — | ||||||
| GE Aerospace | 114 | 118 | 120 | 112 | 107 | 114 | 111 | 105 | 96 | 84 | 83 | 81 | 74 | — | — | — | — | — | — | — | ||||||
| Honeywell International Inc. | 90 | 89 | 90 | 87 | 80 | 77 | 75 | 75 | 74 | 76 | 75 | 70 | 66 | — | — | — | — | — | — | — | ||||||
| Lockheed Martin Corp. | 20 | 20 | 23 | 20 | 19 | 18 | 20 | 21 | 23 | 22 | 24 | 24 | 26 | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 73 | 73 | 71 | 69 | 65 | 65 | 66 | 67 | 71 | 74 | 75 | 81 | 70 | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q4 2022 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 28.65 = 13
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | United Rentals Inc. number of days of inventory outstanding improved from Q2 2022 to Q3 2022 but then deteriorated significantly from Q3 2022 to Q4 2022. |
Average Receivable Collection Period
United Rentals Inc., average receivable collection period calculation (quarterly data)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||
| Receivables turnover | 5.81 | 5.75 | 6.12 | 6.34 | 5.79 | 5.75 | 6.29 | 6.75 | 6.49 | 6.58 | 7.35 | 6.62 | 6.11 | 5.77 | 5.79 | 5.67 | 5.21 | — | — | — | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||
| Average receivable collection period1 | 63 | 63 | 60 | 58 | 63 | 63 | 58 | 54 | 56 | 56 | 50 | 55 | 60 | 63 | 63 | 64 | 70 | — | — | — | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | ||||||||||||||||||||||||||
| Boeing Co. | 14 | 16 | 18 | 14 | 15 | 13 | 15 | 15 | 12 | 17 | 15 | 17 | 16 | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 57 | 55 | 60 | 67 | 64 | 61 | 66 | 72 | 68 | 62 | 60 | 60 | 62 | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 72 | 69 | 71 | 68 | 61 | 63 | 64 | 63 | 59 | 57 | 50 | 52 | 59 | — | — | — | — | — | — | — | ||||||
| GE Aerospace | 89 | 87 | 83 | 82 | 80 | 76 | 77 | 80 | 83 | 82 | 73 | 72 | 70 | — | — | — | — | — | — | — | ||||||
| Honeywell International Inc. | 77 | 77 | 82 | 76 | 72 | 76 | 75 | 75 | 76 | 76 | 71 | 75 | 75 | — | — | — | — | — | — | — | ||||||
| Lockheed Martin Corp. | 14 | 14 | 19 | 14 | 11 | 12 | 14 | 12 | 11 | 14 | 16 | 17 | 14 | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 50 | 51 | 58 | 51 | 55 | 55 | 52 | 61 | 60 | 62 | 54 | 68 | 64 | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q4 2022 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 5.81 = 63
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. |
Operating Cycle
United Rentals Inc., operating cycle calculation (quarterly data)
No. days
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||
| Average inventory processing period | 13 | 11 | 12 | 11 | 10 | 11 | 12 | 8 | 9 | 7 | 7 | 7 | 8 | 9 | 9 | 9 | 8 | — | — | — | ||||||
| Average receivable collection period | 63 | 63 | 60 | 58 | 63 | 63 | 58 | 54 | 56 | 56 | 50 | 55 | 60 | 63 | 63 | 64 | 70 | — | — | — | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Operating cycle1 | 76 | 74 | 72 | 69 | 73 | 74 | 70 | 62 | 65 | 63 | 57 | 62 | 68 | 72 | 72 | 73 | 78 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Operating Cycle, Competitors2 | ||||||||||||||||||||||||||
| Boeing Co. | 466 | 484 | 512 | 507 | 501 | 488 | 493 | 511 | 479 | 533 | 483 | 433 | 404 | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 201 | 210 | 212 | 215 | 208 | 211 | 212 | 221 | 211 | 199 | 189 | 183 | 174 | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 162 | 161 | 165 | 158 | 143 | 140 | 139 | 134 | 121 | 117 | 109 | 113 | 130 | — | — | — | — | — | — | — | ||||||
| GE Aerospace | 203 | 205 | 203 | 194 | 187 | 190 | 188 | 185 | 179 | 166 | 156 | 153 | 144 | — | — | — | — | — | — | — | ||||||
| Honeywell International Inc. | 167 | 166 | 172 | 163 | 152 | 153 | 150 | 150 | 150 | 152 | 146 | 145 | 141 | — | — | — | — | — | — | — | ||||||
| Lockheed Martin Corp. | 34 | 34 | 42 | 34 | 30 | 30 | 34 | 33 | 34 | 36 | 40 | 41 | 40 | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 123 | 124 | 129 | 120 | 120 | 120 | 118 | 128 | 131 | 136 | 129 | 149 | 134 | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q4 2022 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 13 + 63 = 76
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | United Rentals Inc. operating cycle deteriorated from Q2 2022 to Q3 2022 and from Q3 2022 to Q4 2022. |
Average Payables Payment Period
United Rentals Inc., average payables payment period calculation (quarterly data)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||
| Payables turnover | 5.83 | 5.68 | 5.88 | 7.31 | 7.19 | 5.35 | 6.09 | 9.42 | 11.47 | 10.03 | 17.66 | 11.82 | 12.51 | 6.55 | 6.94 | 8.89 | 8.74 | — | — | — | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||
| Average payables payment period1 | 63 | 64 | 62 | 50 | 51 | 68 | 60 | 39 | 32 | 36 | 21 | 31 | 29 | 56 | 53 | 41 | 42 | — | — | — | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | ||||||||||||||||||||||||||
| Boeing Co. | 59 | 57 | 59 | 54 | 57 | 59 | 67 | 74 | 74 | 86 | 77 | 78 | 79 | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 77 | 76 | 77 | 82 | 84 | 79 | 80 | 82 | 77 | 62 | 58 | 60 | 59 | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 81 | 79 | 82 | 78 | 77 | 71 | 70 | 65 | 58 | 51 | 45 | 46 | 54 | — | — | — | — | — | — | — | ||||||
| GE Aerospace | 123 | 116 | 116 | 110 | 110 | 109 | 109 | 103 | 100 | 78 | 73 | 80 | 83 | — | — | — | — | — | — | — | ||||||
| Honeywell International Inc. | 103 | 99 | 101 | 100 | 101 | 95 | 97 | 95 | 95 | 85 | 85 | 86 | 86 | — | — | — | — | — | — | — | ||||||
| Lockheed Martin Corp. | 13 | 17 | 15 | 17 | 5 | 10 | 10 | 12 | 6 | 10 | 10 | 22 | 9 | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 68 | 63 | 68 | 58 | 62 | 60 | 56 | 64 | 66 | 61 | 53 | 77 | 69 | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q4 2022 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.83 = 63
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. |
Cash Conversion Cycle
United Rentals Inc., cash conversion cycle calculation (quarterly data)
No. days
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||
| Average inventory processing period | 13 | 11 | 12 | 11 | 10 | 11 | 12 | 8 | 9 | 7 | 7 | 7 | 8 | 9 | 9 | 9 | 8 | — | — | — | ||||||
| Average receivable collection period | 63 | 63 | 60 | 58 | 63 | 63 | 58 | 54 | 56 | 56 | 50 | 55 | 60 | 63 | 63 | 64 | 70 | — | — | — | ||||||
| Average payables payment period | 63 | 64 | 62 | 50 | 51 | 68 | 60 | 39 | 32 | 36 | 21 | 31 | 29 | 56 | 53 | 41 | 42 | — | — | — | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Cash conversion cycle1 | 13 | 10 | 10 | 19 | 22 | 6 | 10 | 23 | 33 | 27 | 36 | 31 | 39 | 16 | 19 | 32 | 36 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | ||||||||||||||||||||||||||
| Boeing Co. | 407 | 427 | 453 | 453 | 444 | 429 | 426 | 437 | 405 | 447 | 406 | 355 | 325 | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 124 | 134 | 135 | 133 | 124 | 132 | 132 | 139 | 134 | 137 | 131 | 123 | 115 | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 81 | 82 | 83 | 80 | 66 | 69 | 69 | 69 | 63 | 66 | 64 | 67 | 76 | — | — | — | — | — | — | — | ||||||
| GE Aerospace | 80 | 89 | 87 | 84 | 77 | 81 | 79 | 82 | 79 | 88 | 83 | 73 | 61 | — | — | — | — | — | — | — | ||||||
| Honeywell International Inc. | 64 | 67 | 71 | 63 | 51 | 58 | 53 | 55 | 55 | 67 | 61 | 59 | 55 | — | — | — | — | — | — | — | ||||||
| Lockheed Martin Corp. | 21 | 17 | 27 | 17 | 25 | 20 | 24 | 21 | 28 | 26 | 30 | 19 | 31 | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 55 | 61 | 61 | 62 | 58 | 60 | 62 | 64 | 65 | 75 | 76 | 72 | 65 | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q4 2022 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 13 + 63 – 63 = 13
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. |