Operating Profit Margin
since 2005
Calculation
United Rentals Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income (loss)1 | ÷ | Revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 27.76% | = | 100 | × | 3,232) | ÷ | 11,642) |
| Dec 31, 2021 | 23.44% | = | 100 | × | 2,277) | ÷ | 9,716) |
| Dec 31, 2020 | 21.10% | = | 100 | × | 1,800) | ÷ | 8,530) |
| Dec 31, 2019 | 23.01% | = | 100 | × | 2,152) | ÷ | 9,351) |
| Dec 31, 2018 | 24.25% | = | 100 | × | 1,951) | ÷ | 8,047) |
| Dec 31, 2017 | 22.69% | = | 100 | × | 1,507) | ÷ | 6,641) |
| Dec 31, 2016 | 24.56% | = | 100 | × | 1,415) | ÷ | 5,762) |
| Dec 31, 2015 | 26.10% | = | 100 | × | 1,518) | ÷ | 5,817) |
| Dec 31, 2014 | 24.47% | = | 100 | × | 1,391) | ÷ | 5,685) |
| Dec 31, 2013 | 21.76% | = | 100 | × | 1,078) | ÷ | 4,955) |
| Dec 31, 2012 | 14.36% | = | 100 | × | 591) | ÷ | 4,117) |
| Dec 31, 2011 | 15.17% | = | 100 | × | 396) | ÷ | 2,611) |
| Dec 31, 2010 | 8.81% | = | 100 | × | 197) | ÷ | 2,237) |
| Dec 31, 2009 | 4.83% | = | 100 | × | 114) | ÷ | 2,358) |
| Dec 31, 2008 | -19.28% | = | 100 | × | (630) | ÷ | 3,267) |
| Dec 31, 2007 | 17.66% | = | 100 | × | 659) | ÷ | 3,731) |
| Dec 31, 2006 | 17.20% | = | 100 | × | 626) | ÷ | 3,640) |
| Dec 31, 2005 | 14.03% | = | 100 | × | 500) | ÷ | 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 operating profit margin exhibits three distinct phases: a period of extreme volatility during the global financial crisis, a subsequent phase of sustained margin expansion, and a recent period of high-level stability followed by a record peak.
- Financial Crisis and Recovery (2005–2011)
- Operating margins initially grew from 14.03% in 2005 to 17.66% in 2007. A severe contraction occurred in 2008, resulting in an operating loss of 630 million USD and a negative margin of -19.28%. Recovery commenced in 2009 with a margin of 4.83%, which steadily climbed back to 15.17% by 2011 as revenues began to stabilize and recover from the 2009 low of 2.3 billion USD.
- Efficiency Gains and Margin Expansion (2012–2015)
- A period of significant profitability growth is observed between 2012 and 2015. The operating profit margin rose from 14.36% in 2012 to a peak of 26.10% in 2015. This trend coincided with a substantial increase in revenues, which expanded from 4.1 billion USD to 5.8 billion USD, indicating enhanced operational leverage and improved cost management.
- Stabilization and Recent Performance (2016–2022)
- Between 2016 and 2020, margins remained relatively stable, fluctuating within a range of 21.10% to 24.56%. Despite a contraction in revenues during 2020 to 8.5 billion USD, the operating margin remained resilient at 21.10%. A sharp upward trajectory is noted in the final two years of the period, with the operating profit margin reaching a historical peak of 27.76% in 2022, supported by record revenues of 11.6 billion USD.
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Comparison to Competitors
United Rentals Inc., operating profit margin, long-term trends, comparison to competitors
| United Rentals Inc. | Boeing Co. | Caterpillar Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|
| Dec 31, 2022 | 27.76% | -5.33% | 13.97% | 12.65% | 8.07% |
| Dec 31, 2021 | 23.44% | -4.66% | 14.27% | 13.61% | 7.70% |
| Dec 31, 2020 | 21.10% | -21.95% | 11.67% | 13.22% | -3.34% |
| Dec 31, 2019 | 23.01% | -2.58% | 16.33% | 14.29% | 11.64% |
| Dec 31, 2018 | 24.25% | 11.85% | 16.00% | 13.64% | 12.86% |
| Dec 31, 2017 | 22.69% | 11.01% | 10.32% | 11.60% | 14.49% |
| Dec 31, 2016 | 24.56% | 6.17% | 1.39% | 11.74% | 14.28% |
| Dec 31, 2015 | 26.10% | 7.74% | 7.38% | 11.78% | 13.00% |
| Dec 31, 2014 | 24.47% | 8.23% | 10.22% | 12.26% | 15.01% |
| Dec 31, 2013 | 21.76% | 7.58% | 10.68% | 9.93% | 14.70% |
| Dec 31, 2012 | 14.36% | 7.72% | 13.59% | 9.40% | 13.32% |
| Dec 31, 2011 | 15.17% | 8.50% | 12.46% | 8.56% | 13.92% |
| Dec 31, 2010 | 8.81% | 7.73% | 9.94% | 8.94% | 13.23% |
| Dec 31, 2009 | 4.83% | 3.07% | 1.95% | 9.88% | 12.33% |
| Dec 31, 2008 | -19.28% | 6.49% | 9.26% | 12.01% | 13.14% |
| Dec 31, 2007 | 17.66% | 8.78% | 11.73% | 10.81% | 13.08% |
| Dec 31, 2006 | 17.20% | 4.90% | 12.66% | 9.98% | 12.94% |
| Dec 31, 2005 | 14.03% | 5.13% | 11.13% | 8.02% | 12.26% |
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).