Name: United Rentals Inc. (NYSE:URI) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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United Rentals Inc., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Equipment rentals	10,116)	8,207)	7,140)	7,964)	6,940)
Sales of rental equipment	965)	968)	858)	831)	664)
Sales of new equipment	154)	203)	247)	268)	208)
Contractor supplies sales	126)	109)	98)	104)	91)
Service and other revenues	281)	229)	187)	184)	144)
Revenues	11,642)	9,716)	8,530)	9,351)	8,047)
Cost of equipment rentals, excluding depreciation	(4,018)	(3,329)	(2,820)	(3,126)	(2,614)
Depreciation of rental equipment	(1,853)	(1,611)	(1,601)	(1,631)	(1,363)
Cost of rental equipment sales	(399)	(537)	(526)	(518)	(386)
Cost of new equipment sales	(124)	(169)	(214)	(231)	(179)
Cost of contractor supplies sales	(84)	(78)	(69)	(73)	(60)
Cost of service and other revenues	(168)	(139)	(117)	(102)	(81)
Cost of revenues	(6,646)	(5,863)	(5,347)	(5,681)	(4,683)
Gross profit	4,996)	3,853)	3,183)	3,670)	3,364)
Selling, general and administrative expenses	(1,400)	(1,199)	(979)	(1,092)	(1,038)
Merger related costs	—)	(3)	—)	(1)	(36)
Restructuring charge	—)	(2)	(17)	(18)	(31)
Non-rental depreciation and amortization	(364)	(372)	(387)	(407)	(308)
Operating income	3,232)	2,277)	1,800)	2,152)	1,951)
Interest expense, net	(445)	(424)	(669)	(648)	(481)
Other income (expense), net	15)	(7)	8)	10)	6)
Income before provision for income taxes	2,802)	1,846)	1,139)	1,514)	1,476)
Provision for income taxes	(697)	(460)	(249)	(340)	(380)
Net income	2,105)	1,386)	890)	1,174)	1,096)

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).

Total revenues exhibited a general upward trajectory from 2018 to 2022, increasing from US$ 8,047 million to US$ 11,642 million. A temporary contraction was observed in 2020, where revenues declined to US$ 8,530 million, followed by a robust recovery and significant acceleration in growth through 2022. This growth was primarily driven by equipment rentals, which rose from US$ 6,940 million in 2018 to US$ 10,116 million in 2022, reinforcing the core business's dominance over other revenue streams. Conversely, sales of new equipment showed a steady decline, falling from US$ 208 million in 2018 to US$ 154 million in 2022.

Gross Profitability and Margin Trends: Gross profit grew from US$ 3,364 million in 2018 to US$ 4,996 million in 2022. While the gross margin experienced a slight compression between 2018 and 2020, it expanded significantly by 2022. The cost of equipment rentals, excluding depreciation, rose in correlation with revenue, yet the pace of revenue growth in 2022 outstripped the increase in these costs, leading to enhanced margin expansion.
Operational Efficiency and Expense Management: Operating income increased from US$ 1,951 million in 2018 to US$ 3,232 million in 2022. Selling, general, and administrative expenses rose from US$ 1,038 million to US$ 1,400 million over the period, but as a percentage of total revenue, these expenses remained relatively stable or decreased, indicating improved operational leverage. Furthermore, merger-related costs and restructuring charges, which were prominent in 2018 and 2019, were virtually eliminated by 2022, contributing to higher operating margins.
Financial Costs and Net Income: Interest expense, net, peaked in 2020 at US$ 669 million before declining to US$ 445 million in 2022, suggesting a reduction in debt burden or more favorable financing terms. This reduction in financial costs, combined with strong operating performance, resulted in a substantial increase in net income, which rose from US$ 1,096 million in 2018 to US$ 2,105 million in 2022. The net profit margin expanded from approximately 13.6% in 2018 to 18.1% in 2022.
Asset Utilization and Depreciation: Depreciation of rental equipment increased from US$ 1,363 million in 2018 to US$ 1,853 million in 2022. This trend reflects an expansion of the rental fleet to support the growth in rental revenues. Despite the increase in absolute depreciation costs, the ability to generate higher rental income from these assets improved the overall return on the equipment investment.

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