Net Profit Margin
since 2005
Calculation
United Rentals Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income (loss)1 | ÷ | Revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 18.08% | = | 100 | × | 2,105) | ÷ | 11,642) |
| Dec 31, 2021 | 14.27% | = | 100 | × | 1,386) | ÷ | 9,716) |
| Dec 31, 2020 | 10.43% | = | 100 | × | 890) | ÷ | 8,530) |
| Dec 31, 2019 | 12.55% | = | 100 | × | 1,174) | ÷ | 9,351) |
| Dec 31, 2018 | 13.62% | = | 100 | × | 1,096) | ÷ | 8,047) |
| Dec 31, 2017 | 20.27% | = | 100 | × | 1,346) | ÷ | 6,641) |
| Dec 31, 2016 | 9.82% | = | 100 | × | 566) | ÷ | 5,762) |
| Dec 31, 2015 | 10.06% | = | 100 | × | 585) | ÷ | 5,817) |
| Dec 31, 2014 | 9.50% | = | 100 | × | 540) | ÷ | 5,685) |
| Dec 31, 2013 | 7.81% | = | 100 | × | 387) | ÷ | 4,955) |
| Dec 31, 2012 | 1.82% | = | 100 | × | 75) | ÷ | 4,117) |
| Dec 31, 2011 | 3.87% | = | 100 | × | 101) | ÷ | 2,611) |
| Dec 31, 2010 | -1.16% | = | 100 | × | (26) | ÷ | 2,237) |
| Dec 31, 2009 | -2.63% | = | 100 | × | (62) | ÷ | 2,358) |
| Dec 31, 2008 | -21.55% | = | 100 | × | (704) | ÷ | 3,267) |
| Dec 31, 2007 | 9.70% | = | 100 | × | 362) | ÷ | 3,731) |
| Dec 31, 2006 | 6.15% | = | 100 | × | 224) | ÷ | 3,640) |
| Dec 31, 2005 | 5.25% | = | 100 | × | 187) | ÷ | 3,563) |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The net profit margin exhibits a cyclical trajectory characterized by three distinct phases: an initial period of growth, a severe contraction during the global financial crisis, and a sustained recovery leading to record profitability levels.
- Financial Crisis and Volatility (2008–2010)
- A sharp decline in profitability occurred in 2008, with the net profit margin dropping to -21.55% as net income fell to -704 million. This period represents the lowest point of operational efficiency in the analyzed timeframe. A gradual recovery followed, with margins remaining negative but improving to -2.63% in 2009 and -1.16% in 2010, coinciding with a contraction in total revenues.
- Recovery and Stabilization (2011–2016)
- Profitability returned to positive territory in 2011. Between 2011 and 2016, the net profit margin stabilized, generally fluctuating between 1.82% and 10.06%. During this interval, revenues grew steadily from 2.6 billion in 2011 to 5.7 billion in 2016, indicating a period of rebuilding and operational normalization.
- Expansion and Margin Acceleration (2017–2022)
- A significant shift in profitability occurred in 2017, with the net profit margin peaking at 20.27%. Although a subsequent moderation occurred between 2018 and 2020—where margins ranged from 10.43% to 13.62%—the overall trend remained substantially higher than pre-2017 levels. By 2022, the net profit margin reached 18.08%, supported by a peak revenue of 11.6 billion and a record net income of 2.1 billion.
- Long-term Revenue and Income Correlation
- The data indicates a strong positive correlation between scaling revenues and expanded profit margins in the latter half of the period. While revenues grew approximately 3.2 times from 2005 to 2022, net income grew more aggressively, reflecting increased operational leverage and improved cost management over time.
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Comparison to Competitors
United Rentals Inc., net profit margin, long-term trends, comparison to competitors
| United Rentals Inc. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 18.08% | -7.41% | 11.85% | 11.86% | 0.31% | 14.00% | 8.69% | 7.75% |
| Dec 31, 2021 | 14.27% | -6.75% | 13.47% | 10.92% | -9.17% | 16.11% | 9.42% | 6.00% |
| Dec 31, 2020 | 10.43% | -20.42% | 7.68% | 7.90% | 7.81% | 14.64% | 10.45% | -6.22% |
| Dec 31, 2019 | 12.55% | -0.83% | 12.00% | 10.34% | -5.69% | 16.73% | 10.42% | 7.19% |
| Dec 31, 2018 | 13.62% | 10.34% | 11.86% | 9.93% | -19.69% | 16.18% | 9.39% | 7.92% |
| Dec 31, 2017 | 20.27% | 8.78% | 1.77% | 14.63% | -5.11% | 4.08% | 3.92% | 7.61% |
| Dec 31, 2016 | 9.82% | 5.18% | -0.19% | 9.73% | 8.00% | 12.24% | 11.22% | 8.83% |
| Dec 31, 2015 | 10.06% | 5.39% | 4.76% | 9.49% | -5.79% | 12.36% | 7.81% | 13.56% |
| Dec 31, 2014 | 9.50% | 6.00% | 7.09% | 7.95% | 14.27% | 10.52% | 7.93% | 9.55% |
| Dec 31, 2013 | 7.81% | 5.29% | 7.19% | 8.44% | 12.99% | 10.05% | 6.57% | 9.14% |
| Dec 31, 2012 | 1.82% | 4.77% | 9.01% | 7.46% | 13.62% | 7.77% | 5.82% | 8.89% |
| Dec 31, 2011 | 3.87% | 5.85% | 8.59% | 8.41% | 14.97% | 5.66% | 5.71% | 8.56% |
| Dec 31, 2010 | -1.16% | 5.14% | 6.77% | 6.77% | 11.59% | 6.06% | 6.39% | 8.05% |
| Dec 31, 2009 | -2.63% | 1.92% | 3.03% | 3.23% | 10.62% | 6.97% | 6.69% | 7.30% |
| Dec 31, 2008 | -21.55% | 4.39% | 7.40% | 6.88% | 15.44% | 7.64% | 7.53% | 8.08% |
| Dec 31, 2007 | 9.70% | 6.14% | 8.44% | 7.63% | 22.31% | 7.07% | 7.25% | 7.83% |
| Dec 31, 2006 | 6.15% | 3.60% | 9.10% | 7.68% | 20.68% | 6.64% | 6.38% | 7.92% |
| Dec 31, 2005 | 5.25% | 4.69% | 8.39% | 7.24% | 17.66% | 5.98% | 4.90% | 7.26% |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Capital Goods)
United Rentals Inc., net profit margin, long-term trends, comparison to sector (capital goods)
| United Rentals Inc. | Capital Goods | |
|---|---|---|
| Dec 31, 2022 | 18.08% | 5.27% |
| Dec 31, 2021 | 14.27% | 3.71% |
| Dec 31, 2020 | 10.43% | 1.85% |
| Dec 31, 2019 | 12.55% | 5.03% |
| Dec 31, 2018 | 13.62% | 2.99% |
| Dec 31, 2017 | 20.27% | 3.41% |
| Dec 31, 2016 | 9.82% | 7.61% |
| Dec 31, 2015 | 10.06% | 4.69% |
| Dec 31, 2014 | 9.50% | 9.51% |
| Dec 31, 2013 | 7.81% | 8.78% |
| Dec 31, 2012 | 1.82% | 8.73% |
| Dec 31, 2011 | 3.87% | 9.04% |
| Dec 31, 2010 | -1.16% | 7.93% |
| Dec 31, 2009 | -2.63% | 6.61% |
| Dec 31, 2008 | -21.55% | 9.45% |
| Dec 31, 2007 | 9.70% | 11.53% |
| Dec 31, 2006 | 6.15% | 10.82% |
| Dec 31, 2005 | 5.25% | 9.72% |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Industrials)
United Rentals Inc., net profit margin, long-term trends, comparison to industry (industrials)
| United Rentals Inc. | Industrials | |
|---|---|---|
| Dec 31, 2022 | 18.08% | 5.04% |
| Dec 31, 2021 | 14.27% | 5.85% |
| Dec 31, 2020 | 10.43% | 0.09% |
| Dec 31, 2019 | 12.55% | 4.11% |
| Dec 31, 2018 | 13.62% | 4.75% |
| Dec 31, 2017 | 20.27% | 5.79% |
| Dec 31, 2016 | 9.82% | 7.43% |
| Dec 31, 2015 | 10.06% | 6.48% |
| Dec 31, 2014 | 9.50% | 8.76% |
| Dec 31, 2013 | 7.81% | 8.23% |
| Dec 31, 2012 | 1.82% | 7.39% |
| Dec 31, 2011 | 3.87% | 8.26% |
| Dec 31, 2010 | -1.16% | 7.48% |
| Dec 31, 2009 | -2.63% | 5.76% |
| Dec 31, 2008 | -21.55% | 7.27% |
| Dec 31, 2007 | 9.70% | 9.56% |
| Dec 31, 2006 | 6.15% | 14.87% |
| Dec 31, 2005 | 5.25% | 3.55% |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).