Return on Equity (ROE)
since 2005
Calculation
United Rentals Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss)1 | ÷ | Stockholders’ equity (deficit)1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 29.81% | = | 100 | × | 2,105) | ÷ | 7,062) |
| Dec 31, 2021 | 23.13% | = | 100 | × | 1,386) | ÷ | 5,991) |
| Dec 31, 2020 | 19.58% | = | 100 | × | 890) | ÷ | 4,545) |
| Dec 31, 2019 | 30.65% | = | 100 | × | 1,174) | ÷ | 3,830) |
| Dec 31, 2018 | 32.21% | = | 100 | × | 1,096) | ÷ | 3,403) |
| Dec 31, 2017 | 43.34% | = | 100 | × | 1,346) | ÷ | 3,106) |
| Dec 31, 2016 | 34.34% | = | 100 | × | 566) | ÷ | 1,648) |
| Dec 31, 2015 | 39.63% | = | 100 | × | 585) | ÷ | 1,476) |
| Dec 31, 2014 | 30.07% | = | 100 | × | 540) | ÷ | 1,796) |
| Dec 31, 2013 | 21.17% | = | 100 | × | 387) | ÷ | 1,828) |
| Dec 31, 2012 | 4.86% | = | 100 | × | 75) | ÷ | 1,543) |
| Dec 31, 2011 | 157.81% | = | 100 | × | 101) | ÷ | 64) |
| Dec 31, 2010 | — | = | 100 | × | (26) | ÷ | (20) |
| Dec 31, 2009 | — | = | 100 | × | (62) | ÷ | (19) |
| Dec 31, 2008 | — | = | 100 | × | (704) | ÷ | (29) |
| Dec 31, 2007 | 17.94% | = | 100 | × | 362) | ÷ | 2,018) |
| Dec 31, 2006 | 14.56% | = | 100 | × | 224) | ÷ | 1,538) |
| Dec 31, 2005 | 15.22% | = | 100 | × | 187) | ÷ | 1,229) |
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 from 2005 to 2022 is characterized by a severe contraction during the global financial crisis followed by a sustained period of expansion and capital accumulation.
- Net Income and Equity Dynamics
- Net income grew steadily from 2005 through 2007 before experiencing a sharp decline, resulting in substantial losses between 2008 and 2010. This period coincided with a transition of stockholders' equity from a positive position to a deficit. A recovery began in 2011, with net income trending upward consistently to reach 2,105 million by 2022. Stockholders' equity mirrored this recovery, expanding from a deficit in 2010 to a high of 7,062 million by the end of the period.
- Return on Equity (ROE) Trends
- Prior to 2008, ROE remained relatively stable, fluctuating between 14.56% and 17.94%. The metric became mathematically distorted in 2011, reaching 157.81% as a result of a small positive equity base relative to returning profitability. From 2012 to 2017, ROE showed a strong upward trajectory, peaking at 43.34% in 2017, indicating a period of high operational efficiency and effective leverage.
- Recent Performance and Stabilization
- Since 2018, ROE has entered a phase of stabilization, fluctuating between 19.58% and 32.21%. Although net income continued to grow significantly through 2022, the simultaneous increase in the stockholders' equity base has moderated the ROE percentage, settling at 29.81% in 2022.
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Comparison to Competitors
United Rentals Inc., ROE, 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 | 29.81% | — | 42.25% | 14.45% | 0.62% | 29.74% | 61.86% | 7.16% |
| Dec 31, 2021 | 23.13% | — | 39.37% | 13.06% | -16.17% | 29.85% | 57.62% | 5.29% |
| Dec 31, 2020 | 19.58% | — | 19.56% | 9.44% | 16.04% | 27.23% | 113.60% | -4.88% |
| Dec 31, 2019 | 30.65% | — | 41.77% | 13.75% | -17.58% | 33.22% | 199.23% | 13.25% |
| Dec 31, 2018 | 32.21% | 3,085.55% | 43.79% | 13.32% | -72.16% | 37.21% | 361.98% | 13.70% |
| Dec 31, 2017 | 43.34% | 2,309.01% | 5.50% | 17.30% | -9.00% | 9.58% | — | 15.37% |
| Dec 31, 2016 | 34.34% | 599.14% | -0.51% | 12.90% | 11.65% | 24.83% | 350.89% | 18.33% |
| Dec 31, 2015 | 39.63% | 81.70% | 14.19% | 13.03% | -6.23% | 26.08% | 116.40% | 27.81% |
| Dec 31, 2014 | 30.07% | 62.85% | 22.06% | 11.36% | 11.89% | 24.01% | 106.29% | 19.93% |
| Dec 31, 2013 | 21.17% | 30.82% | 18.21% | 11.08% | 10.00% | 22.47% | 60.61% | 17.95% |
| Dec 31, 2012 | 4.86% | 66.47% | 32.40% | 8.07% | 11.09% | 22.55% | 7,038.46% | 19.80% |
| Dec 31, 2011 | 157.81% | 114.31% | 38.25% | 18.07% | 12.15% | 19.13% | 265.23% | 22.76% |
| Dec 31, 2010 | — | 119.56% | 24.94% | 12.62% | 9.79% | 18.96% | 78.91% | 20.45% |
| Dec 31, 2009 | — | 61.65% | 10.24% | 5.65% | 9.40% | 24.34% | 73.24% | 19.08% |
| Dec 31, 2008 | — | — | 58.44% | 16.75% | 16.63% | 38.85% | 112.29% | 29.46% |
| Dec 31, 2007 | 17.94% | 45.25% | 39.86% | 19.22% | 19.22% | 26.50% | 30.93% | 19.78% |
| Dec 31, 2006 | 14.56% | 46.74% | 51.57% | 23.14% | 18.55% | 21.43% | 36.74% | 21.58% |
| Dec 31, 2005 | 15.22% | 23.26% | 33.85% | 21.31% | 14.95% | 14.71% | 23.20% | 18.06% |
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., ROE, long-term trends, comparison to sector (capital goods)
| United Rentals Inc. | Capital Goods | |
|---|---|---|
| Dec 31, 2022 | 29.81% | 13.39% |
| Dec 31, 2021 | 23.13% | 8.48% |
| Dec 31, 2020 | 19.58% | 4.42% |
| Dec 31, 2019 | 30.65% | 18.11% |
| Dec 31, 2018 | 32.21% | 11.28% |
| Dec 31, 2017 | 43.34% | 10.13% |
| Dec 31, 2016 | 34.34% | 20.08% |
| Dec 31, 2015 | 39.63% | 10.42% |
| Dec 31, 2014 | 30.07% | 18.16% |
| Dec 31, 2013 | 21.17% | 15.14% |
| Dec 31, 2012 | 4.86% | 17.58% |
| Dec 31, 2011 | 157.81% | 19.63% |
| Dec 31, 2010 | — | 15.88% |
| Dec 31, 2009 | — | 13.47% |
| Dec 31, 2008 | — | 24.97% |
| Dec 31, 2007 | 17.94% | 22.64% |
| Dec 31, 2006 | 14.56% | 22.16% |
| Dec 31, 2005 | 15.22% | 17.27% |
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., ROE, long-term trends, comparison to industry (industrials)
| United Rentals Inc. | Industrials | |
|---|---|---|
| Dec 31, 2022 | 29.81% | 15.38% |
| Dec 31, 2021 | 23.13% | 15.38% |
| Dec 31, 2020 | 19.58% | 0.24% |
| Dec 31, 2019 | 30.65% | 14.56% |
| Dec 31, 2018 | 32.21% | 17.95% |
| Dec 31, 2017 | 43.34% | 18.24% |
| Dec 31, 2016 | 34.34% | 21.69% |
| Dec 31, 2015 | 39.63% | 16.11% |
| Dec 31, 2014 | 30.07% | 19.68% |
| Dec 31, 2013 | 21.17% | 16.40% |
| Dec 31, 2012 | 4.86% | 17.20% |
| Dec 31, 2011 | 157.81% | 20.10% |
| Dec 31, 2010 | — | 16.41% |
| Dec 31, 2009 | — | 12.84% |
| Dec 31, 2008 | — | 20.74% |
| Dec 31, 2007 | 17.94% | 20.36% |
| Dec 31, 2006 | 14.56% | 32.16% |
| Dec 31, 2005 | 15.22% | 7.80% |
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).