Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
United Rentals Inc., long-term (investment) activity ratios (quarterly data)
Based on: 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio exhibits a generally positive trend from March 2019 through December 2022, starting at 0.79 and reaching a peak near 0.93 in mid-2019 and early 2021 periods. A decline to 0.82 by the end of 2022 is noted after fluctuating in the range of 0.83 to 0.91 during 2021 and early 2022. This suggests a moderate efficiency in generating sales from fixed assets with some variability towards the later periods.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- This adjusted measure follows a similar pattern to the net fixed asset turnover but at slightly lower levels throughout the periods. Starting at 0.79 in March 2019, the ratio shows gradual improvement to approximately 0.88 in mid-2020 before decreasing to 0.78 by the end of 2022. The overall trend is moderately stable with slight declines in the most recent quarters, indicating some impact of including operating leases and right-of-use assets on asset utilization efficiency.
- Total Asset Turnover
- The total asset turnover ratio demonstrates a steady increase over the observed timeframe. Beginning around 0.44 in early 2019, it progresses to around 0.52 by mid-2022 before a slight reduction occurs towards the end of 2022, dropping to 0.48. This upward movement reflects an improving capacity to generate revenues from total assets, albeit with minor variability as the period concludes.
- Equity Turnover
- The equity turnover ratio shows a distinct declining trend after a peak in the mid-2019 period. Initially increasing from 2.36 in early 2019 to a maximum of 2.57 in mid-2019, it then steadily decreases to 1.65 by the end of 2022. This indicates a decreasing efficiency in generating sales from shareholders' equity over the longer term, which may imply increasing equity base or relatively slower growth in revenues associated with equity.
Net Fixed Asset Turnover
United Rentals Inc., net fixed asset turnover calculation (quarterly data)
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Revenues | 3,296) | 3,051) | 2,771) | 2,524) | 2,776) | 2,596) | 2,287) | 2,057) | 2,279) | 2,187) | 1,939) | 2,125) | 2,456) | 2,488) | 2,290) | 2,117) | 2,306) | 2,116) | 1,891) | 1,734) | ||||||
| Property and equipment (rental and non-rental), net | 14,116) | 12,201) | 11,670) | 11,229) | 11,172) | 11,167) | 10,243) | 9,060) | 9,309) | 9,639) | 9,695) | 10,022) | 10,391) | 10,751) | 10,417) | 10,018) | 10,214) | 9,439) | 8,693) | 8,145) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||
| Net fixed asset turnover1 | 0.82 | 0.91 | 0.91 | 0.91 | 0.87 | 0.83 | 0.86 | 0.93 | 0.92 | 0.90 | 0.93 | 0.93 | 0.90 | 0.86 | 0.85 | 0.84 | 0.79 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||||||||||||||||||||||
| Boeing Co. | 6.31 | 5.85 | 5.72 | 5.68 | 5.70 | 5.65 | 5.44 | 4.85 | 4.92 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 4.70 | 4.62 | 4.36 | 4.18 | 3.99 | 3.84 | 3.59 | 3.32 | 3.15 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 6.59 | 6.80 | 6.50 | 6.38 | 6.41 | 6.45 | 6.25 | 6.08 | 6.02 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| GE Aerospace | 5.08 | 5.04 | 4.83 | 4.73 | 4.55 | 4.53 | 4.45 | 4.33 | 1.63 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Honeywell International Inc. | 6.48 | 6.54 | 6.45 | 6.27 | 6.18 | 6.28 | 6.15 | 5.88 | 5.86 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Lockheed Martin Corp. | 8.27 | 8.48 | 8.48 | 8.70 | 8.83 | 9.05 | 9.17 | 9.15 | 9.07 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 4.42 | 4.50 | 4.43 | 4.37 | 4.30 | 4.39 | 4.25 | 4.10 | 3.78 | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q4 2022 Calculation
Net fixed asset turnover
= (RevenuesQ4 2022
+ RevenuesQ3 2022
+ RevenuesQ2 2022
+ RevenuesQ1 2022)
÷ Property and equipment (rental and non-rental), net
= (3,296 + 3,051 + 2,771 + 2,524)
÷ 14,116 = 0.82
2 Click competitor name to see calculations.
Analysis of the quarterly financial data indicates several notable trends and patterns in the company's operational and asset management performance over the observed periods.
- Revenues
- Revenue figures display a cyclical yet generally upward trajectory throughout the time span. Starting at $1,734 million in the first quarter of 2018, revenues increased steadily until the fourth quarter of 2018, peaking at $2,306 million. This was followed by fluctuations with a decline observed in early 2020, coinciding with $2,125 million in the first quarter and a further dip to $1,939 million in the second quarter of 2020. Recovery commenced thereafter, with revenues rising consistently through 2021 and 2022, reaching $3,296 million by the last quarter of 2022. This trend suggests resilience and growth after the downturn experienced in 2020.
- Property and Equipment (Rental and Non-Rental), Net
- The net value of property and equipment exhibits an upward trend over the entire period. Beginning at $8,145 million in early 2018, it progressively increased to $10,214 million by the end of 2018. A minor decrease occurred in 2020, bottoming at $9,309 million in the last quarter, corresponding to the period of decreased revenues. Post-2020, the asset base expanded more aggressively, reaching $14,116 million by the final quarter of 2022. This indicates continuous investment and expansion in property and equipment assets, potentially supporting the increased revenue capacity.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio, reflecting the efficiency in generating revenues from fixed assets, shows variable performance. The ratio begins at 0.79 in the third quarter of 2018 and improves gradually, peaking around 0.93 in the second and third quarters of 2020 and maintaining near 0.91 through 2022. However, a slight decline to 0.82 is observed at the end of 2022. The improvements in the ratio through 2020 suggest enhanced utilization of fixed assets contributing to revenue generation, while the recent decrease may warrant monitoring for potential efficiency challenges amid rising asset levels.
Overall, the data depicts a company that experienced a temporary downturn in revenue and asset base around early 2020, possibly linked to external market conditions. Subsequent periods show strong recovery with increased investment in assets and improved operational efficiency, leading to higher revenue generation. The slight reduction in asset turnover ratio in late 2022 may highlight emerging constraints in asset utilization that could impact future profitability if the trend persists.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
United Rentals Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation (quarterly data)
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Revenues | 3,296) | 3,051) | 2,771) | 2,524) | 2,776) | 2,596) | 2,287) | 2,057) | 2,279) | 2,187) | 1,939) | 2,125) | 2,456) | 2,488) | 2,290) | 2,117) | 2,306) | 2,116) | 1,891) | 1,734) | ||||||
| Property and equipment (rental and non-rental), net | 14,116) | 12,201) | 11,670) | 11,229) | 11,172) | 11,167) | 10,243) | 9,060) | 9,309) | 9,639) | 9,695) | 10,022) | 10,391) | 10,751) | 10,417) | 10,018) | 10,214) | 9,439) | 8,693) | 8,145) | ||||||
| Operating lease right-of-use assets | 819) | 801) | 802) | 792) | 784) | 775) | 781) | 681) | 688) | 663) | 666) | 666) | 669) | 650) | 619) | 622) | —) | —) | —) | —) | ||||||
| Property and equipment (rental and non-rental), net (including operating lease, right-of-use asset) | 14,935) | 13,002) | 12,472) | 12,021) | 11,956) | 11,942) | 11,024) | 9,741) | 9,997) | 10,302) | 10,361) | 10,688) | 11,060) | 11,401) | 11,036) | 10,640) | 10,214) | 9,439) | 8,693) | 8,145) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 0.78 | 0.86 | 0.86 | 0.85 | 0.81 | 0.77 | 0.80 | 0.87 | 0.85 | 0.85 | 0.87 | 0.88 | 0.85 | 0.81 | 0.80 | 0.79 | 0.79 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||||||||||||||||||||||
| Eaton Corp. plc | 5.58 | 5.73 | 5.59 | 5.58 | 5.60 | 5.62 | 5.42 | 5.30 | 5.26 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 3.95 | 4.01 | 3.93 | 3.87 | 3.80 | 3.89 | 3.76 | 3.63 | 3.36 | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q4 2022 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset)
= (RevenuesQ4 2022
+ RevenuesQ3 2022
+ RevenuesQ2 2022
+ RevenuesQ1 2022)
÷ Property and equipment (rental and non-rental), net (including operating lease, right-of-use asset)
= (3,296 + 3,051 + 2,771 + 2,524)
÷ 14,935 = 0.78
2 Click competitor name to see calculations.
The quarterly financial data exhibits notable trends in revenues, property and equipment net values, and net fixed asset turnover for the analyzed period.
- Revenues
- Revenues show a generally increasing trend over the observed quarters with some fluctuations. Starting at 1,734 million US dollars in the first quarter of 2018, revenues increase steadily to reach 2,776 million US dollars by the fourth quarter of 2021. Despite a dip during the early quarters of 2020, likely influenced by external factors, the revenues recover and continue to grow, reaching a peak of 3,296 million US dollars in the last quarter of 2022. This overall upward trajectory demonstrates growth in sales or business activity over the period, with seasonal or economic variations causing temporary decreases.
- Property and Equipment, Net
- The net value of property and equipment, including operating lease and right-of-use assets, shows a consistent increase throughout the period. From 8,145 million US dollars at the start of 2018, the value rises to 14,935 million US dollars by the end of 2022. This steady accumulation suggests ongoing investment in fixed assets, possibly to support expansion or modernization efforts. Noteworthy are periods where value increments are more pronounced, particularly between the last quarter of 2021 and the end of 2022, indicating significant capital expenditures or acquisitions in this phase.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio shows moderate fluctuations but remains within a relatively narrow band, indicating stable efficiency in asset utilization. Starting at around 0.79 to 0.81 during 2018 and 2019, the ratio experiences a slight elevation reaching about 0.86 during 2022. However, the fourth quarter of 2022 records a decline to 0.78, the lowest in the given period. The general trend suggests that while asset utilization efficiency improved slightly over the years, the recent drop might warrant attention to ensure assets are fully optimized relative to revenue generation.
Total Asset Turnover
United Rentals Inc., total asset turnover calculation (quarterly data)
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Revenues | 3,296) | 3,051) | 2,771) | 2,524) | 2,776) | 2,596) | 2,287) | 2,057) | 2,279) | 2,187) | 1,939) | 2,125) | 2,456) | 2,488) | 2,290) | 2,117) | 2,306) | 2,116) | 1,891) | 1,734) | ||||||
| Total assets | 24,183) | 21,419) | 20,820) | 20,169) | 20,292) | 20,306) | 19,641) | 17,542) | 17,868) | 17,908) | 17,900) | 18,868) | 18,970) | 19,405) | 19,047) | 18,586) | 18,133) | 16,354) | 15,108) | 14,688) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||
| Total asset turnover1 | 0.48 | 0.52 | 0.51 | 0.50 | 0.48 | 0.45 | 0.45 | 0.48 | 0.48 | 0.49 | 0.50 | 0.50 | 0.49 | 0.47 | 0.46 | 0.45 | 0.44 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | ||||||||||||||||||||||||||
| Boeing Co. | 0.49 | 0.45 | 0.45 | 0.45 | 0.45 | 0.43 | 0.41 | 0.38 | 0.38 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 0.69 | 0.66 | 0.63 | 0.61 | 0.58 | 0.57 | 0.53 | 0.50 | 0.50 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 0.59 | 0.59 | 0.56 | 0.56 | 0.58 | 0.57 | 0.52 | 0.52 | 0.56 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| GE Aerospace | 0.39 | 0.40 | 0.39 | 0.37 | 0.36 | 0.30 | 0.30 | 0.29 | 0.29 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Honeywell International Inc. | 0.57 | 0.58 | 0.55 | 0.54 | 0.53 | 0.54 | 0.53 | 0.51 | 0.51 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Lockheed Martin Corp. | 1.25 | 1.24 | 1.24 | 1.28 | 1.32 | 1.28 | 1.28 | 1.28 | 1.29 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 0.42 | 0.42 | 0.41 | 0.41 | 0.40 | 0.40 | 0.39 | 0.38 | 0.35 | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q4 2022 Calculation
Total asset turnover
= (RevenuesQ4 2022
+ RevenuesQ3 2022
+ RevenuesQ2 2022
+ RevenuesQ1 2022)
÷ Total assets
= (3,296 + 3,051 + 2,771 + 2,524)
÷ 24,183 = 0.48
2 Click competitor name to see calculations.
The quarterly financial data reveals distinct patterns and developments in the company's financial performance and asset management over the examined periods.
- Revenue Trends
- Revenues exhibit a general upward trend from March 2018 through December 2022, rising from approximately $1,734 million to $3,296 million. This growth is punctuated by seasonal fluctuations within each year, showing quarterly variability typical of the industry or the business cycle. Notably, a dip occurs in early 2020 corresponding with the onset of global disruptions, with revenue decreasing from $2,456 million in December 2019 to $1,939 million in the following June. However, the company demonstrates a robust recovery in subsequent quarters, exceeding previous revenue peaks by the end of 2021 and continuing through 2022.
- Total Assets
- Total assets have increased steadily over the period, moving from $14,688 million in March 2018 to $24,183 million by December 2022. Despite small declines in some quarters, such as the slight reduction observed around 2020, the overall asset base growth suggests ongoing investments or acquisitions. The steady increase in total assets corresponds with the growth in revenues, indicating an expansion in operational capacity or asset base to support higher sales volumes.
- Total Asset Turnover
- The total asset turnover ratio, available from the third quarter of 2018 onward, fluctuates within a relatively narrow range between 0.44 and 0.52. This ratio exhibits a slight improvement over the years, moving from 0.44 to around 0.50 toward the end of 2022, indicating a gradual increase in the efficiency of asset utilization to generate revenues. The ratio dips to a low point around 2021 but recovers thereafter. Despite asset growth, the efficiency metric remains stable, reflecting balanced management of assets in relation to revenue generation.
In summary, the company shows sustained revenue growth supported by a progressively larger asset base and a steady enhancement in asset turnover efficiency. The temporary impact on revenues and asset turnover during 2020 aligns with broader economic challenges but the subsequent recovery indicates resilience and operational adaptability.
Equity Turnover
United Rentals Inc., equity turnover calculation (quarterly data)
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Revenues | 3,296) | 3,051) | 2,771) | 2,524) | 2,776) | 2,596) | 2,287) | 2,057) | 2,279) | 2,187) | 1,939) | 2,125) | 2,456) | 2,488) | 2,290) | 2,117) | 2,306) | 2,116) | 1,891) | 1,734) | ||||||
| Stockholders’ equity | 7,062) | 6,353) | 6,046) | 6,084) | 5,991) | 5,483) | 5,094) | 4,745) | 4,545) | 4,161) | 3,907) | 3,635) | 3,830) | 3,650) | 3,478) | 3,375) | 3,403) | 3,334) | 3,164) | 3,058) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||
| Equity turnover1 | 1.65 | 1.75 | 1.76 | 1.67 | 1.62 | 1.68 | 1.73 | 1.78 | 1.88 | 2.09 | 2.31 | 2.57 | 2.44 | 2.52 | 2.54 | 2.50 | 2.36 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Equity Turnover, Competitors2 | ||||||||||||||||||||||||||
| Boeing Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 3.57 | 3.45 | 3.26 | 2.92 | 2.92 | 2.74 | 2.57 | 2.43 | 2.55 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 1.22 | 1.26 | 1.21 | 1.19 | 1.20 | 1.22 | 1.24 | 1.18 | 1.20 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| GE Aerospace | 2.02 | 2.29 | 2.06 | 1.82 | 1.76 | 1.92 | 2.15 | 2.10 | 2.05 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Honeywell International Inc. | 2.12 | 1.97 | 1.96 | 1.87 | 1.85 | 1.94 | 1.89 | 1.81 | 1.86 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Lockheed Martin Corp. | 7.12 | 5.41 | 5.61 | 6.57 | 6.12 | 6.89 | 10.24 | 10.46 | 10.87 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 0.92 | 0.94 | 0.93 | 0.89 | 0.88 | 0.89 | 0.88 | 0.84 | 0.78 | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q4 2022 Calculation
Equity turnover
= (RevenuesQ4 2022
+ RevenuesQ3 2022
+ RevenuesQ2 2022
+ RevenuesQ1 2022)
÷ Stockholders’ equity
= (3,296 + 3,051 + 2,771 + 2,524)
÷ 7,062 = 1.65
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in revenues, stockholders’ equity, and equity turnover ratios over the period examined.
- Revenues
- Revenues exhibited a generally upward trajectory from the first quarter of 2018 through the end of 2022, with fluctuations consistent with seasonal or cyclical variations. Starting at US$1,734 million in Q1 2018, revenues increased steadily, peaking in Q4 2018 at US$2,306 million. There was a brief decline in early 2019, followed by recovery and growth through 2019, maintaining levels above US$2,400 million most quarters.
- In 2020, a decline is noticeable amid the early stages of the pandemic, with revenues dropping to US$1,939 million in Q2 2020 from US$2,456 million in Q4 2019. However, the subsequent quarters showed resilience and recovery, climbing again to US$2,279 million by Q4 2020. The growth trend accelerated through 2021 and 2022, with revenues reaching an all-time high of US$3,296 million in Q4 2022, indicating strong market demand and operational expansion.
- Stockholders’ Equity
- Stockholders’ equity demonstrated consistent growth throughout the observed period, signaling ongoing capital accumulation and retained earnings enhancement. Beginning at US$3,058 million in Q1 2018, equity progressively increased each quarter, reaching US$3,830 million by the end of 2019.
- During 2020, despite market uncertainty, equity rose further from US$3,635 million in Q1 to US$4,545 million in Q4, suggesting effective capital management. This increasing trend continued robustly into 2021 and 2022, with equity peaking at US$7,062 million in Q4 2022. The consistent rise in equity indicates sustained investor confidence and strengthening of the company’s financial foundation.
- Equity Turnover
- Equity turnover ratios, which measure the efficiency of using equity to generate revenues, display a declining trend from 2018 through 2022. Initial values around 2.36 in Q1 2018 indicated relatively high efficiency, with the ratio slightly increasing to peak near 2.57 in Q2 2019.
- However, from late 2019 onward, the ratio trended downward from about 2.31 in Q3 2020 to approximately 1.65 by the end of 2022. This decrease implies that revenue growth has not kept pace proportionally with the rising stockholders’ equity, potentially indicating more conservative leveraging, equity issuance, or reinvestment in assets that have yet to fully translate into revenue increases.
Overall, the financial data portrays a company with growing revenues and expanding equity base, although with diminishing equity turnover efficiency, a situation that may warrant further management review to optimize capital utilization going forward.