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United Rentals Inc. (NYSE:URI)

This company has been moved to the archive! The financial data has not been updated since January 25, 2023.

Common-Size Income Statement
Quarterly Data

United Rentals Inc., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: 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
Equipment rentals 83.34 89.54 88.85 86.17 83.29 87.71 85.31 81.04 81.35 85.09 84.68 83.91 83.96 86.29 85.59 84.79 86.25 87.95 86.25 84.14
Sales of rental equipment 12.41 5.93 5.92 8.36 11.67 7.05 8.48 12.98 12.07 9.10 9.08 9.79 9.93 7.96 8.60 9.07 8.07 6.62 8.30 10.44
Sales of new equipment 1.18 1.05 1.37 1.78 1.80 1.81 2.49 2.38 3.42 2.47 2.73 2.92 3.22 2.69 2.62 2.93 2.95 2.55 2.33 2.42
Contractor supplies sales 0.97 1.05 1.19 1.15 1.04 1.12 1.18 1.17 1.10 1.14 1.19 1.18 1.06 1.09 1.18 1.13 1.08 1.13 1.27 1.04
Service and other revenues 2.09 2.43 2.67 2.54 2.20 2.31 2.54 2.43 2.06 2.19 2.32 2.21 1.83 1.97 2.01 2.08 1.65 1.75 1.85 1.96
Revenues 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Cost of equipment rentals, excluding depreciation -32.07 -34.51 -36.16 -35.90 -32.89 -34.13 -35.64 -34.76 -32.34 -31.50 -33.37 -35.15 -32.65 -32.68 -33.58 -35.05 -31.70 -31.71 -32.79 -34.14
Depreciation of rental equipment -14.90 -15.40 -16.49 -17.23 -15.81 -15.87 -16.83 -18.23 -16.89 -18.06 -20.37 -20.05 -17.10 -16.76 -17.42 -18.66 -16.26 -16.21 -17.08 -18.57
Cost of rental equipment sales -5.10 -2.26 -2.42 -3.76 -5.91 -3.81 -4.81 -7.97 -7.59 -5.62 -5.42 -5.88 -6.31 -4.90 -5.07 -5.90 -4.51 -3.92 -4.87 -6.17
Cost of new equipment sales -0.94 -0.82 -1.12 -1.47 -1.48 -1.46 -2.10 -2.04 -2.94 -2.15 -2.37 -2.54 -2.77 -2.33 -2.23 -2.55 -2.52 -2.17 -2.01 -2.13
Cost of contractor supplies sales -0.55 -0.75 -0.83 -0.79 -0.76 -0.81 -0.83 -0.83 -0.75 -0.82 -0.83 -0.85 -0.77 -0.72 -0.83 -0.80 -0.74 -0.71 -0.85 -0.69
Cost of service and other revenues -1.30 -1.47 -1.48 -1.55 -1.33 -1.43 -1.53 -1.46 -1.36 -1.33 -1.50 -1.32 -1.10 -1.09 -1.09 -1.09 -1.00 -0.95 -1.06 -1.04
Cost of revenues -54.85% -55.23% -58.50% -60.70% -58.18% -57.51% -61.74% -65.29% -61.87% -59.49% -63.85% -65.79% -60.71% -58.48% -60.22% -64.05% -56.72% -55.67% -58.65% -62.75%
Gross profit 45.15% 44.77% 41.50% 39.30% 41.82% 42.49% 38.26% 34.71% 38.13% 40.51% 36.15% 34.21% 39.29% 41.52% 39.78% 35.95% 43.28% 44.33% 41.35% 37.25%
Selling, general and administrative expenses -11.47 -11.67 -12.38 -12.80 -11.60 -12.56 -13.16 -12.15 -11.32 -10.61 -11.45 -12.56 -10.91 -10.97 -11.83 -13.23 -13.10 -12.52 -12.64 -13.38
Merger related costs 0.00 0.00 0.00 0.00 0.00 0.00 -0.13 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.05 -0.95 -0.52 -0.11 -0.06
Restructuring charge 0.00 0.03 -0.04 0.00 -0.04 0.00 0.00 -0.05 -0.26 -0.27 -0.15 -0.09 -0.08 -0.08 -0.26 -0.38 -0.69 -0.43 -0.21 -0.12
Non-rental depreciation and amortization -2.61 -2.95 -3.28 -3.84 -3.35 -3.78 -3.94 -4.42 -4.17 -4.44 -4.90 -4.71 -3.91 -4.10 -4.59 -4.91 -4.12 -3.54 -3.54 -4.09
Operating income 31.07% 30.19% 25.80% 22.66% 26.84% 26.16% 21.03% 18.08% 22.38% 25.19% 19.65% 16.85% 24.39% 26.37% 23.10% 17.38% 24.41% 27.32% 24.85% 19.61%
Interest expense, net -4.00 -3.47 -4.08 -3.72 -3.35 -5.08 -4.37 -4.81 -5.48 -12.71 -6.70 -6.40 -6.92 -5.91 -7.86 -7.13 -6.16 -5.58 -5.92 -6.29
Other income (expense), net 0.09 0.03 0.22 0.20 -0.29 0.12 -0.17 0.10 0.09 0.09 0.00 0.19 0.16 0.04 0.09 0.14 0.17 0.00 0.05 0.06
Income before provision for income taxes 27.15% 26.75% 21.94% 19.14% 23.20% 21.19% 16.48% 13.37% 16.98% 12.57% 12.94% 10.64% 17.63% 20.50% 15.33% 10.39% 18.43% 21.74% 18.98% 13.38%
Provision for income taxes -7.77 -6.88 -4.15 -4.60 -5.87 -5.43 -3.67 -3.50 -3.95 -3.06 -2.01 -2.49 -3.87 -4.78 -3.54 -2.13 -4.99 -6.00 -4.71 -2.83
Net income 19.39% 19.86% 17.79% 14.54% 17.33% 15.76% 12.81% 9.87% 13.03% 9.51% 10.93% 8.14% 13.76% 15.72% 11.79% 8.27% 13.44% 15.74% 14.28% 10.55%

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).

An analysis of the common-size income statements from March 2018 through December 2022 reveals a general expansion in profitability and a strategic shift in revenue composition. The organization has demonstrated a capacity to increase its gross and operating margins over the five-year period, despite fluctuations in the external economic environment.

Revenue Composition
Equipment rentals remain the primary revenue driver, consistently representing between 81% and 90% of total revenues. A peak in this segment is observed in September 2022, where rentals reached 89.54% of total revenue. Conversely, the sales of new equipment have seen a steady decline, falling from 2.42% in March 2018 to 1.18% by December 2022. Sales of rental equipment exhibit significant volatility, often spiking in the fourth quarter of the year, suggesting a cyclical pattern of fleet disposal.
Gross Profitability and Cost Management
Gross profit margins show a positive long-term trajectory, increasing from 37.25% in March 2018 to 45.15% by December 2022. This improvement is primarily attributed to the management of cost of revenues, which decreased from 62.75% to 54.85% over the period. While the cost of equipment rentals excluding depreciation remained relatively stable, a notable reduction in the depreciation of rental equipment as a percentage of revenue—from a peak of 20.37% in June 2020 to 14.90% in December 2022—contributed to the margin expansion.
Operating Efficiency
Operating income as a percentage of revenue has expanded significantly, rising from 19.61% in March 2018 to 31.07% in December 2022. Selling, general, and administrative expenses have been maintained within a tight range, generally fluctuating between 11% and 13% of revenue. Additionally, non-rental depreciation and amortization have trended downward, decreasing from 4.09% to 2.61% over the analyzed timeframe, further enhancing operating leverage.
Net Income and Financial Obligations
Net income margins have trended upward, ending the period at 19.39% in December 2022 compared to 10.55% in March 2018. A period of volatility in interest expenses is evident, particularly in September 2020 when interest costs spiked to 12.71% of revenue. However, this figure subsequently stabilized and decreased to 4.00% by December 2022. The combined effect of improved operating margins and reduced interest burdens relative to revenue has led to a strengthened bottom-line performance.

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