Return on Assets (ROA)
since 2005
Calculation
United Rentals Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income (loss)1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 8.70% | = | 100 | × | 2,105) | ÷ | 24,183) |
| Dec 31, 2021 | 6.83% | = | 100 | × | 1,386) | ÷ | 20,292) |
| Dec 31, 2020 | 4.98% | = | 100 | × | 890) | ÷ | 17,868) |
| Dec 31, 2019 | 6.19% | = | 100 | × | 1,174) | ÷ | 18,970) |
| Dec 31, 2018 | 6.04% | = | 100 | × | 1,096) | ÷ | 18,133) |
| Dec 31, 2017 | 8.96% | = | 100 | × | 1,346) | ÷ | 15,030) |
| Dec 31, 2016 | 4.72% | = | 100 | × | 566) | ÷ | 11,988) |
| Dec 31, 2015 | 4.84% | = | 100 | × | 585) | ÷ | 12,083) |
| Dec 31, 2014 | 4.33% | = | 100 | × | 540) | ÷ | 12,467) |
| Dec 31, 2013 | 3.45% | = | 100 | × | 387) | ÷ | 11,231) |
| Dec 31, 2012 | 0.68% | = | 100 | × | 75) | ÷ | 11,026) |
| Dec 31, 2011 | 2.44% | = | 100 | × | 101) | ÷ | 4,143) |
| Dec 31, 2010 | -0.70% | = | 100 | × | (26) | ÷ | 3,693) |
| Dec 31, 2009 | -1.61% | = | 100 | × | (62) | ÷ | 3,859) |
| Dec 31, 2008 | -16.80% | = | 100 | × | (704) | ÷ | 4,191) |
| Dec 31, 2007 | 6.20% | = | 100 | × | 362) | ÷ | 5,842) |
| Dec 31, 2006 | 4.17% | = | 100 | × | 224) | ÷ | 5,366) |
| Dec 31, 2005 | 3.55% | = | 100 | × | 187) | ÷ | 5,274) |
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 financial performance between 2005 and 2022 is characterized by an initial period of volatility followed by a sustained recovery and a significant expansion in asset efficiency. The overall trajectory shows a transition from extreme instability during the late 2000s to a period of robust profitability and scaled asset management in the subsequent decade.
- Return on Assets (ROA) Volatility
- A period of steady improvement is observed from 2005 to 2007, with ROA increasing from 3.55% to 6.20%. This trend was sharply reversed in 2008, as ROA collapsed to -16.80%, reflecting a substantial net loss of 704 million dollars. A slow recovery followed, with ROA remaining negative through 2010 before returning to positive territory in 2011.
- Asset Expansion and Efficiency Dilution
- A significant shift in the asset base occurred between 2011 and 2012, where total assets increased from 4.14 billion dollars to 11.03 billion dollars. This rapid expansion led to a temporary dilution of asset efficiency, with ROA dropping to its lowest positive point of 0.68% in 2012. This suggests that the acquisition or investment of new assets preceded the realization of the associated earnings.
- Operational Scaling and Profitability Growth
- From 2017 through 2022, a marked increase in operational efficiency is evident. ROA climbed to 8.96% in 2017 and remained strong, ending the period at 8.70% in 2022. This improvement is driven by an exponential increase in net income, which rose from 566 million dollars in 2016 to 2.1 billion dollars in 2022, indicating that net earnings grew at a faster rate than the expansion of the total asset base.
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Comparison to Competitors
United Rentals Inc., ROA, 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 | 8.70% | -3.60% | 8.18% | 7.03% | 0.12% | 7.97% | 10.84% | 3.27% |
| Dec 31, 2021 | 6.83% | -3.03% | 7.84% | 6.30% | -3.28% | 8.60% | 12.41% | 2.39% |
| Dec 31, 2020 | 4.98% | -7.80% | 3.83% | 4.43% | 2.25% | 7.40% | 13.47% | -2.17% |
| Dec 31, 2019 | 6.19% | -0.48% | 7.77% | 6.74% | -1.87% | 10.47% | 13.11% | 3.96% |
| Dec 31, 2018 | 6.04% | 8.91% | 7.83% | 6.90% | -7.23% | 11.71% | 11.24% | 3.93% |
| Dec 31, 2017 | 8.96% | 8.88% | 0.98% | 9.15% | -1.53% | 2.79% | 4.30% | 4.70% |
| Dec 31, 2016 | 4.72% | 5.44% | -0.09% | 6.32% | 2.42% | 8.88% | 11.09% | 5.64% |
| Dec 31, 2015 | 4.84% | 5.48% | 2.68% | 6.38% | -1.24% | 9.67% | 7.34% | 8.70% |
| Dec 31, 2014 | 4.33% | 5.49% | 4.36% | 5.35% | 2.35% | 9.33% | 9.75% | 6.81% |
| Dec 31, 2013 | 3.45% | 4.95% | 4.46% | 5.24% | 1.99% | 8.64% | 8.24% | 6.31% |
| Dec 31, 2012 | 0.68% | 4.39% | 6.36% | 3.39% | 1.99% | 6.99% | 7.10% | 5.74% |
| Dec 31, 2011 | 2.44% | 5.02% | 6.05% | 7.55% | 1.97% | 5.19% | 7.00% | 8.10% |
| Dec 31, 2010 | -0.70% | 4.82% | 4.22% | 5.38% | 1.55% | 5.34% | 8.34% | 7.48% |
| Dec 31, 2009 | -1.61% | 2.11% | 1.49% | 2.35% | 1.41% | 5.98% | 8.61% | 6.87% |
| Dec 31, 2008 | -16.80% | 4.97% | 5.25% | 6.35% | 2.18% | 7.87% | 9.62% | 8.30% |
| Dec 31, 2007 | 6.20% | 6.91% | 6.31% | 7.40% | 2.79% | 7.23% | 10.49% | 7.74% |
| Dec 31, 2006 | 4.17% | 4.28% | 6.95% | 8.32% | 2.99% | 6.73% | 8.96% | 7.92% |
| Dec 31, 2005 | 3.55% | 4.28% | 6.06% | 7.88% | 2.43% | 5.12% | 6.58% | 6.68% |
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., ROA, long-term trends, comparison to sector (capital goods)
| United Rentals Inc. | Capital Goods | |
|---|---|---|
| Dec 31, 2022 | 8.70% | 2.84% |
| Dec 31, 2021 | 6.83% | 1.86% |
| Dec 31, 2020 | 4.98% | 0.80% |
| Dec 31, 2019 | 6.19% | 2.72% |
| Dec 31, 2018 | 6.04% | 1.74% |
| Dec 31, 2017 | 8.96% | 1.83% |
| Dec 31, 2016 | 4.72% | 4.09% |
| Dec 31, 2015 | 4.84% | 2.17% |
| Dec 31, 2014 | 4.33% | 3.87% |
| Dec 31, 2013 | 3.45% | 3.45% |
| Dec 31, 2012 | 0.68% | 3.30% |
| Dec 31, 2011 | 2.44% | 3.30% |
| Dec 31, 2010 | -0.70% | 2.70% |
| Dec 31, 2009 | -1.61% | 2.16% |
| Dec 31, 2008 | -16.80% | 3.33% |
| Dec 31, 2007 | 6.20% | 3.89% |
| Dec 31, 2006 | 4.17% | 3.91% |
| Dec 31, 2005 | 3.55% | 3.25% |
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., ROA, long-term trends, comparison to industry (industrials)
| United Rentals Inc. | Industrials | |
|---|---|---|
| Dec 31, 2022 | 8.70% | 3.31% |
| Dec 31, 2021 | 6.83% | 3.40% |
| Dec 31, 2020 | 4.98% | 0.04% |
| Dec 31, 2019 | 6.19% | 2.56% |
| Dec 31, 2018 | 6.04% | 3.16% |
| Dec 31, 2017 | 8.96% | 3.59% |
| Dec 31, 2016 | 4.72% | 4.55% |
| Dec 31, 2015 | 4.84% | 3.52% |
| Dec 31, 2014 | 4.33% | 4.31% |
| Dec 31, 2013 | 3.45% | 3.91% |
| Dec 31, 2012 | 0.68% | 3.38% |
| Dec 31, 2011 | 2.44% | 3.69% |
| Dec 31, 2010 | -0.70% | 3.03% |
| Dec 31, 2009 | -1.61% | 2.24% |
| Dec 31, 2008 | -16.80% | 3.10% |
| Dec 31, 2007 | 6.20% | 3.87% |
| Dec 31, 2006 | 4.17% | 6.41% |
| Dec 31, 2005 | 3.55% | 1.42% |
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).