United Rentals Inc. (NYSE:URI)

The financial data demonstrates a fluctuating yet overall positive growth pattern in revenues and profitability over the five-year period. Total revenues steadily increased from US$8,047 million in 2018 to US$11,642 million in 2022, marking a significant rise driven primarily by equipment rentals and service-related revenues.

Revenue Components

Equipment rentals showed growth from US$6,940 million in 2018, with a dip in 2020 at US$7,140 million, subsequently rising sharply to US$10,116 million by 2022. Sales of rental equipment increased gradually over the period, peaking at US$968 million in 2021 before slightly declining to US$965 million in 2022. Sales of new equipment exhibited a declining trend from US$208 million in 2018 to US$154 million in 2022. Contractor supplies sales and service and other revenues both increased steadily, reflecting expansions in these segments.

Cost of Revenues

Costs associated with equipment rentals (excluding depreciation) rose proportionally with revenue, increasing from US$2,614 million in 2018 to US$4,018 million in 2022. Similarly, depreciation expenses on rental equipment rose from US$1,363 million to US$1,853 million over the same period. The costs for sales of rental and new equipment fluctuated, with a noticeable decline in cost of rental equipment sales in 2022, suggesting improved margins in that category. Overall cost of revenues increased, but at a generally consistent rate relative to revenue growth.

Profitability

Gross profit declined in 2020 to US$3,183 million from US$3,670 million in 2019, aligning with the dip in revenue that year, and then recovered strongly to reach US$4,996 million in 2022. Selling, general and administrative expenses experienced moderate increases but remained proportionally controlled in relation to revenues. Operating income mirrored gross profit trends, declining in 2020 but rising thereafter to a high of US$3,232 million in 2022. The net income followed a similar trajectory, dipping in 2020 to US$890 million but growing robustly to US$2,105 million in 2022, indicating improved operational efficiency and profitability.

Expenses and Other Financial Items

Interest expense peaked in 2020 at US$669 million and decreased subsequently, contributing to improved income before taxes in later years. Non-rental depreciation and amortization expenses remained relatively stable over the period. The provision for income taxes increased in line with pre-tax income, from US$380 million in 2018 to US$697 million in 2022. Minor and irregular merger-related costs and restructuring charges had limited impact on overall profitability metrics.

In summary, the data reflects a resilient business model with revenue growth primarily driven by expansions in equipment rentals and service revenues, supported by effective cost management. The temporary setback in 2020 appears attributable to broader industry or market conditions but was followed by strong recovery and enhanced profitability, culminating in record net income levels by 2022.