United Rentals Inc. (NYSE:URI)

The financial data exhibits varied trends across different categories of property, plant, and equipment from 2018 to 2022. Rental equipment shows a consistent upward trajectory in value, increasing from $13.962 billion in 2018 to $20.074 billion in 2022, indicating a significant investment in core rental assets over the period.

Land holdings demonstrate relative stability with minor fluctuations, slightly decreasing from $103 million in 2018 to $101 million in 2019, then gradually rising to $131 million by 2022. This suggests limited acquisition or disposal activity in land assets.

Buildings exhibit a downward movement initially, declining from $277 million in 2018 to $210 million in 2019, followed by a modest recovery to $230 million by 2022. Such variations may reflect adjustments or revaluation in property-related assets.

Non-rental vehicles show a decline from $200 million in 2018 to $168 million in 2019 and 2020 but then experience a marked increase to $317 million by 2022. This sharp growth in recent years might indicate increased fleet acquisition or replacement activity.

Machinery and equipment steadily increase from $135 million in 2018 to $223 million in 2022, showcasing gradual enhancement of supporting operational assets.

Furniture and fixtures more than accumulate in value over the period, rising from $240 million in 2018 to $402 million in 2022, reflecting continued investment in office or facility furnishings.

Leasehold improvements display a consistent upward trend, increasing from $272 million in 2018 to $516 million in 2022, implying ongoing expenditures on leased property enhancements.

Overall gross property and equipment (rental and non-rental) initially dip from $15.189 billion in 2018 to $15.608 billion in 2020 but then recover and rise significantly to reach $21.893 billion by 2022. This pattern aligns with the observed increases in rental equipment and other asset categories in later years.

Accumulated depreciation and amortization grow steadily in magnitude, from a negative $4.975 billion in 2018 to negative $7.777 billion in 2022, consistent with asset aging and usage over time.

Net property and equipment values reflect some variability, declining from $10.214 billion in 2018 to $9.309 billion in 2020, followed by a recovery to $14.116 billion in 2022. This trend suggests a period of asset reduction or impairment around 2020, with subsequent expansion and capital investment leading to a higher net asset base by the end of the period.

Average Age Ratio

The average age ratio exhibited a rising trend from 2018 through 2020, increasing from 32.98% to a peak of 40.65%. This upward movement indicates that the property, plant, and equipment became relatively older during this period. However, following 2020, the ratio decreased to 37.92% in 2021 and further declined to 35.74% in 2022. This reduction after 2020 suggests subsequent investments or asset renewals that contributed to lowering the relative age of the asset base.

Overall, the data suggest an initial phase of aging assets reaching a maximum in 2020, followed by a period of partial rejuvenation or asset turnover in the two subsequent years.

Accumulated Depreciation and Amortization

The accumulated depreciation and amortization expense has shown a consistent increasing trend over the five-year period. Starting at $4,975 million at the end of 2018, it rose each year, reaching $7,777 million by the end of 2022. This steady increase suggests ongoing aging and usage of property and equipment assets, indicating a continuous allocation of asset costs over time.

Property and Equipment (Rental and Non-rental), Gross

The gross value of property and equipment displayed fluctuations throughout the years but with a notable upward trend overall. Beginning at $15,189 million in 2018, the value increased slightly up to 2019 at $16,164 million, followed by a decrease in 2020 to $15,608 million. Thereafter, the figure surged to $17,925 million in 2021 and increased significantly to $21,893 million in 2022. This suggests periods of asset acquisition and possibly disposals, with substantial investments or asset additions in the last two years of the period examined.

Land

The land value remained relatively stable with slight growth over the period. The amount moved from $103 million in 2018 to $131 million in 2022, indicating modest land acquisitions or revaluations, but no major changes occurred in this asset category compared to others.

Average Age Ratio

The average age ratio of property and equipment experienced an initial increase from 32.98% in 2018 to a peak of 40.65% in 2020. This increase indicates the existing assets were aging without significant replacement or addition of newer assets during the earlier years. However, after 2020, the ratio decreased to 37.92% in 2021 and further to 35.74% in 2022, likely reflecting the impact of asset additions or disposals of older assets, which would lower the weighted average age of the asset base.