United Rentals Inc. (NYSE:URI)

Asset Turnover

The reported total asset turnover ratio experienced a moderate increase from 0.44 in 2018 to 0.49 in 2019, followed by stabilization around 0.48 through 2022. The adjusted total asset turnover mirrored this pattern, starting at 0.43 in 2018, rising to 0.49 in 2019, and then slightly declining to hold steady at approximately 0.48 thereafter. This suggests a consistent efficiency in using assets to generate sales over the later periods.

Liquidity Ratios (Current Ratio)

The reported current ratio showed improvement beginning in 2020, after maintaining a relatively low level near 0.83-0.84 in 2018 and 2019. It increased significantly to 1.07 in 2020, dropped back to 0.83 in 2021, and then rose to 1.11 in 2022. The adjusted current ratio reflected a similar yet more pronounced trend, rising from 0.9 in 2018 and 2019 to 1.16 in 2020, decreasing to 0.9 in 2021, and achieving a notably higher 1.23 in 2022. This indicates enhanced short-term liquidity, especially evident in the adjusted data by the end of the period.

Leverage Ratios

Reported debt to equity consistently declined from 3.45 in 2018 to 1.61 in 2022, indicating a significant reduction in financial leverage. The adjusted figure showed a similar decline from 2.37 to 1.22 over the same time frame. Correspondingly, reported debt to capital decreased from 0.78 to 0.62, and adjusted debt to capital declined from 0.70 to 0.55. Financial leverage also trended downward, with reported leverage falling from 5.33 in 2018 to around 3.4 in 2022, and adjusted leverage dropping from 3.6 to approximately 2.43. Overall, these ratios illustrate a concerted reduction in the company's reliance on debt relative to equity and capital, reflecting a moderated risk profile.

Profitability Ratios

The reported net profit margin decreased from 13.62% in 2018 to 10.43% in 2020 before rising sharply to 18.08% by 2022. The adjusted net profit margin showed a more volatile pattern, initially higher than reported figures, dropping significantly from 16.16% in 2018 to 9.5% in 2020, then increasing substantially to 22.4% at the end of the period. Return on equity (ROE) exhibited a downward trend from 32.21% in 2018 to 19.58% in 2020, followed by recovery to nearly 30% in 2022 for reported ROE. The adjusted ROE decreased from 24.85% to 12.52% and then improved to 26.2%. Return on assets (ROA) followed a similar trajectory, with reported ROA decreasing slightly to 4.98% in 2020 then rising to 8.7% by 2022, and adjusted ROA declining from 6.9% to 4.51% before climbing sharply to 10.77%. These trends suggest temporary pressures on profitability around 2020, with strong recovery and improvement in margins and returns in subsequent years.

The financial data reveal consistent growth in revenues over the period from the end of 2018 through 2022, with revenues increasing from $8,047 million in 2018 to $11,642 million in 2022. This represents a significant upward trend, indicating expanding sales or service volumes.

Total assets similarly show a rising trend, growing from $18,133 million at the end of 2018 to $24,183 million in 2022. This increase in asset base suggests ongoing investments or acquisitions, contributing to the company's capacity and operational scale.

Asset turnover ratios

The reported total asset turnover ratio remains relatively stable, fluctuating slightly between 0.44 and 0.49 during the five-year span. After reaching 0.49 in 2019, it marginally decreased and then plateaued at 0.48 for the last three years. This stability indicates that the company has maintained its efficiency in generating revenues from its asset base, despite the growth in total assets.

The adjusted total asset turnover ratio follows a similar pattern, with a low starting point of 0.43 in 2018, peaking at 0.49 in 2019, dipping slightly in 2020 to 0.47, and then stabilizing at 0.48 through 2022. This consistency supports the conclusion that the company's asset utilization effectiveness has been steady over the analyzed period.

Adjusted revenues and adjusted total assets align closely with their reported counterparts, showing parallel movements and confirming the reliability of trends identified with the unadjusted figures.

Overall, the data indicate a robust expansion in the company's scale, with steady operational efficiency. The simultaneous growth in revenues and assets, coupled with stable asset turnover ratios, implies that while the company is investing in asset growth, it maintains proficient use of those assets to generate revenue.

The analysis of the annual financial data reveals notable trends in the liquidity condition over the five-year period. Both current assets and adjusted current assets show a consistent increase from 2018 to 2022, indicating growth in the short-term resources available to the company. Specifically, current assets increased from 1,761 million US dollars in 2018 to 2,723 million in 2022, while adjusted current assets rose from 1,854 million to 2,857 million in the same timeframe.

On the liabilities side, current liabilities and adjusted current liabilities present a more variable pattern. Current liabilities initially increased slightly from 2018 (2,116 million) to 2019 (2,198 million), then declined in 2020 (1,890 million), only to rise again sharply in 2021 (2,603 million) before decreasing to 2,445 million in 2022. Adjusted current liabilities follow a similar trajectory, moving from 2,060 million in 2018 to 2,314 million in 2022, with a dip in the middle years.

The reported current ratio, which measures immediate liquidity by comparing current assets to current liabilities, fluctuates substantially over the period. It remained below 1.0 in four out of five years, indicating periods when current liabilities exceeded current assets. The ratio increased from 0.83 in 2018 to 1.07 in 2020, then dropped back to 0.83 in 2021 before ending higher at 1.11 in 2022.

The adjusted current ratio, likely reflecting refinements that exclude certain items from assets and liabilities, depicts a stronger liquidity position. It consistently exceeded the reported ratio, ranging from 0.90 in 2018 to an improving 1.23 in 2022. Notably, this adjusted ratio crossed above 1.0 in 2020 and maintained that level in 2022, suggesting a more favorable short-term financial stability when adjustments are accounted for.

Key Trends

1. Steady growth in both current and adjusted current assets over five years.

2. Fluctuating current liabilities with noticeable dips and rises, but ending slightly above 2018 levels.

3. Reported current ratio remains below or near 1.0 in most years, indicating tight liquidity, with some improvement toward 2022.

4. Adjusted current ratio shows a consistently better liquidity position, crossing the 1.0 benchmark in 2020 and improving further in 2022.

5. The disparity between reported and adjusted ratios suggests adjustments remove short-term constraints or clarify asset/liability classifications to better reflect liquidity.

Overall, the data imply an improving liquidity profile over the analyzed timeframe, particularly evident in the adjusted metrics. Despite volatility in liabilities, asset growth and correction for certain items combine to present a progressively stronger short-term financial position by the end of 2022.

The financial data exhibits notable trends in the company's capital structure and leverage over the five-year period ending December 31, 2022.

Total Debt

The total debt level decreased from 11,747 million USD in 2018 to 9,682 million USD in 2020, indicating initial deleveraging efforts. However, from 2021 onward, total debt rose again, reaching 11,370 million USD in 2022, close to the 2018 level. This fluctuation suggests a period of debt reduction followed by renewed borrowing or increased leverage.

Stockholders’ Equity

Stockholders’ equity consistently increased over the period, from 3,403 million USD in 2018 to 7,062 million USD in 2022. This steady growth reflects accumulation of retained earnings or equity issuances, strengthening the company’s financial base.

Reported Debt to Equity Ratio

The reported debt to equity ratio decreased significantly from 3.45 in 2018 to 1.61 in 2022. This downward trend points to a considerable reduction in leverage relative to equity, indicating improved financial stability and lower risk from a creditor perspective.

Adjusted Total Debt

Adjusted total debt follows a similar pattern to reported total debt but at a slightly higher level, accounting for additional adjustments. It decreased from 12,395 million USD in 2018 to 10,409 million USD in 2020, then increased to 12,223 million USD in 2022. This pattern confirms the initial deleveraging followed by an increase in borrowings or liabilities.

Adjusted Stockholders’ Equity

Adjusted equity also rose consistently from 5,239 million USD in 2018 to 9,998 million USD in 2022. The growth rate appears robust, reflecting similar strengthening of the capital base as with reported equity but at adjusted levels.

Adjusted Debt to Equity Ratio

This ratio decreased from 2.37 in 2018 to 1.22 in 2022, mirroring the decline in the reported debt to equity ratio but starting from a lower level. This indicates that after adjustments, the company’s leverage is even more conservative compared to the reported figures, suggesting prudent financial management and an improved balance between debt and equity financing.

Overall, the data indicates that the company has improved its financial leverage profile over the analyzed period, primarily through growth in equity and effective management of debt levels. While total debt did increase again in the later years, the faster growth in equity mitigated the impact on leverage ratios. The reductions in both reported and adjusted debt to equity ratios point to enhanced financial resilience and reduced credit risk.

The financial data reveals notable trends in the company's debt and capital structure over the five-year period ending December 31, 2022. There is a general pattern of decreasing leverage ratios, both reported and adjusted, suggesting a gradual reduction in the proportion of debt relative to capital.

Total Debt

Total debt decreased from $11,747 million in 2018 to $9,682 million in 2020, indicating efforts to reduce liabilities during that period. However, debt levels stabilized between 2020 and 2021 before increasing again to $11,370 million by 2022, approaching levels seen in 2018 and 2019.

Total Capital

Total capital, which represents the sum of debt and equity financing, experienced modest fluctuations. It slightly declined from $15,150 million in 2018 to $14,227 million in 2020 but then rebounded to $18,432 million by 2022. This rebound signals an expansion in the capital base, potentially driven by equity growth or asset accumulation.

Reported Debt to Capital Ratio

This ratio exhibited a consistent downward trend from 0.78 in 2018 to 0.62 by 2021, where it plateaued through 2022. The decline reflects improved capitalization, with relatively less reliance on debt financing compared to overall capital.

Adjusted Total Debt and Capital

Adjusted debt and capital figures, which possibly reflect normalized or debt-equivalent adjustments, follow similar trends. Adjusted total debt decreased from $12,395 million in 2018 to $10,409 million in 2020, before rising to $12,223 million by 2022. Adjusted total capital also decreased initially but then increased, reaching $22,221 million in 2022, indicating overall capital growth exceeding the increase in debt.

Adjusted Debt to Capital Ratio

The adjusted ratio declined steadily from 0.70 in 2018 to 0.55 in 2022. This decline corroborates the theme of improved balance sheet strength and decreased leverage, showing a significant reduction in financial risk over the period.

In summary, the company demonstrates an overall trend of deleveraging with both reported and adjusted debt-to-capital ratios falling markedly over five years. Despite the rebound in debt in the last reported year, capital growth outpaced debt increases, supporting a stronger capital structure. These patterns indicate prudent financial management aimed at reducing leverage and enhancing balance sheet resilience.

The financial data reveals several key trends over the five-year period ending in 2022.

Total Assets

Total assets have experienced a fluctuating yet overall upward trend, increasing from 18,133 million US dollars in 2018 to 24,183 million US dollars in 2022. Despite a slight decrease in 2020, total assets rebounded in subsequent years, reaching their highest value at the end of 2022.

Stockholders’ Equity

Stockholders’ equity displayed consistent growth throughout the period. Starting at 3,403 million US dollars in 2018, it steadily increased each year, reaching 7,062 million US dollars by 2022. This steady rise indicates an improvement in the company's net worth and suggests accumulation of retained earnings or capital injections over time.

Reported Financial Leverage

The reported financial leverage ratio decreased from 5.33 in 2018 to 3.39 in 2021, before stabilizing at 3.42 in 2022. This trend shows an initial deleveraging process, indicating a reduction in reliance on debt relative to equity, although leverage slightly increased in the last year observed.

Adjusted Total Assets

Adjusted total assets closely paralleled the trend in reported total assets but were consistently higher. Beginning at 18,874 million US dollars in 2018, they fluctuated slightly but overall trended upwards, reaching 24,317 million US dollars by 2022. The adjustment appears to provide a more comprehensive asset base, possibly reflecting revaluations or inclusions of additional asset components.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity also showed a steady increase, rising from 5,239 million US dollars in 2018 to 9,998 million US dollars in 2022. The adjustments relative to reported equity suggest notable items affecting equity valuation, and the persistent growth indicates strengthening financial stability on an adjusted basis.

Adjusted Financial Leverage

The adjusted financial leverage ratio consistently declined over the period, from 3.6 in 2018 to 2.43 in 2022. This steady decrease suggests ongoing deleveraging when considering the adjusted metrics, pointing to a more conservative capital structure or improved equity base after adjustments.

Overall, the data indicates a positive trend in asset growth and equity strengthening, accompanied by a reduction in financial leverage, especially when adjusted metrics are considered. The company's capital structure appears to have improved over time, suggesting enhanced financial resilience and potentially lower risk exposure by the end of 2022.

The financial performance exhibits notable fluctuations and overall growth across the analyzed periods.

Net Income

The net income showed an upward trend from 2018 to 2019, rising from 1,096 million USD to 1,174 million USD. This was followed by a decline in 2020 to 890 million USD, likely reflecting challenging conditions during that year. Subsequently, the net income recovered significantly, reaching 1,386 million USD in 2021 and further increasing to 2,105 million USD in 2022. The growth in the last two years indicates a strong recovery and expansion.

Revenues

Revenues followed a similar pattern, increasing from 8,047 million USD in 2018 to 9,351 million USD in 2019 before declining to 8,530 million USD in 2020. Thereafter, revenues increased steadily to 9,716 million USD in 2021 and rose further to 11,642 million USD in 2022. This trend points to a resilient revenue base with substantial growth following the dip in 2020.

Reported Net Profit Margin

The reported net profit margin decreased from 13.62% in 2018 to 12.55% in 2019, and further declined to 10.43% in 2020. However, there was a marked improvement in 2021 to 14.27%, followed by a significant increase to 18.08% in 2022. The margin trend corresponds with the changes in net income and revenues, highlighting improved profitability in the later years.

Adjusted Net Income

The adjusted net income increased from 1,302 million USD in 2018 to 1,438 million USD in 2019 but sharply decreased to 810 million USD in 2020, indicating a period of adjusted earnings challenge. Recovery was evident in 2021 with 1,665 million USD and strong growth in 2022 to 2,619 million USD, surpassing previous levels.

Adjusted Revenues

Adjusted revenues mirror the reported revenues, showing a slight increase from 8,057 million USD in 2018 to 9,350 million USD in 2019, followed by a decline to 8,526 million USD in 2020. Growth resumed to 9,748 million USD in 2021 and further increased to 11,690 million USD in 2022.

Adjusted Net Profit Margin

The adjusted net profit margin declined from 16.16% in 2018 to 15.38% in 2019, with a more pronounced decrease to 9.5% in 2020. This was followed by a significant rebound to 17.08% in 2021 and an even stronger increase to 22.4% in 2022. This indicates improved core profitability after adjustments, especially notable in the most recent year.

In summary, the data reflects a strong recovery and expansion from the downturn experienced in 2020, with both revenue and profitability metrics reaching their highest points in 2022. The improvement in net profit margins, particularly on an adjusted basis, suggests enhanced operational efficiency or favorable market conditions contributing to better earnings quality. The marked increase in margins and net income in the last two years provides a positive outlook on the company’s financial health and operational effectiveness.

The financial data reveals several trends and patterns over the five-year period ending December 31, 2022. Both net income and stockholders’ equity demonstrate an overall upward trajectory, with net income experiencing a dip in 2020 before recovering strongly in the subsequent years. Stockholders’ equity shows steady growth each year, suggesting consistent value accumulation.

Net Income

Net income started at 1,096 million USD in 2018, increased moderately to 1,174 million USD in 2019, then declined to 890 million USD in 2020. This decrease could reflect external challenges or internal adjustments during that year. Following 2020, net income rose significantly to 1,386 million USD in 2021 and further to 2,105 million USD in 2022, indicating a robust recovery and strong profitability growth.

Stockholders’ Equity

Stockholders’ equity showed a consistent increase from 3,403 million USD in 2018 to 7,062 million USD in 2022. This steady rise suggests that the company has effectively retained earnings and possibly raised additional equity capital, strengthening its financial base over time.

Reported Return on Equity (ROE)

The reported ROE declined from 32.21% in 2018 to 19.58% in 2020, reflecting the net income downturn in that period. Afterward, it improved to 23.13% in 2021 and 29.81% in 2022, approaching the earlier high levels. This recovery indicates enhanced efficiency in utilizing equity to generate profits.

Adjusted Net Income

Adjusted net income follows a similar pattern to net income but with more pronounced volatility. It increased from 1,302 million USD in 2018 to 1,438 million USD in 2019, then fell sharply to 810 million USD in 2020. The rebound was strong, with adjusted net income reaching 1,665 million USD in 2021 and accelerating further to 2,619 million USD in 2022, suggesting that adjustments capturing non-recurring items or other factors emphasize underlying earnings strength.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity increased steadily from 5,239 million USD in 2018 to 9,998 million USD in 2022. This upward trend supports sustained growth and capital accumulation, possibly adjusted for intangible assets or other balance sheet modifications.

Adjusted ROE

Adjusted ROE decreased notably from 24.85% in 2018 to 12.52% in 2020, reflecting the dip in adjusted net income. The ratio then improved to 19.96% in 2021 and rose further to 26.2% in 2022. This recovery highlights improved profitability on an adjusted basis and suggests better operational or financial performance after accounting adjustments.

Overall, the analysis identifies a temporary setback in financial profitability and returns around 2020, followed by a significant resurgence in both net and adjusted measures by 2022. The consistent growth in equity measures demonstrates ongoing capital strengthening. Ratios measuring returns on equity indicate efficient use of shareholders’ funds, with values approaching pre-2020 levels by the end of the period.

The financial data reveals notable trends over the five-year period ending December 31, 2022. Total assets showed fluctuation in the earlier years but experienced consistent growth starting in 2021, culminating in a significant increase by the end of 2022. Parallel to this, adjusted total assets mirrored this trend, reinforcing the pattern of asset expansion in recent years.

Net income demonstrated variability, with a decline observed in 2020, likely reflecting challenging market or operational conditions during that year. However, from 2021 onwards, net income rebounded sharply, reaching its highest level in 2022. This rebound is even more pronounced when considering adjusted net income, which also exhibited a dip in 2020 but recovered more robustly in the subsequent years, surpassing previous highs by the end of 2022.

Return on assets (ROA), both reported and adjusted, followed a similar trajectory. Reported ROA experienced a decrease in 2020, indicating lower profitability relative to assets during that year. Yet, significant improvement occurred in the following years, with 2022 marking the peak in the period analyzed. Adjusted ROA, which accounts for certain modifications in financial measurements, underscored this enhancement to a greater extent, reaching double-digit levels by 2022. This suggests effective asset utilization and enhanced operational efficiency.

Total Assets and Adjusted Total Assets

Initial decline in 2020 reversed by steady growth in 2021 and 2022, with 2022 showing substantial asset base expansion.

Net Income and Adjusted Net Income

Decline in 2020 followed by considerable recovery and growth, with 2022 registering peak profitability.

Reported and Adjusted ROA

Reduced profitability in 2020 gave way to marked improvements, culminating in the highest returns in 2022, particularly evident in adjusted metrics.

Overall, the data indicates a period of contraction or challenge in 2020, succeeded by strong recovery and favorable financial performance improvements through 2022. Asset growth combined with increased profitability and efficiency suggests effective management responses and operational resilience throughout the analyzed timeframe.