Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Income Statement
- Analysis of Liquidity Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Enterprise Value (EV)
- Net Profit Margin since 2005
- Operating Profit Margin since 2005
- Current Ratio since 2005
- Debt to Equity since 2005
- Price to Earnings (P/E) since 2005
- Price to Book Value (P/BV) since 2005
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Profitability Ratios (Summary)
United Rentals Inc., profitability 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).
- Gross Profit Margin
- The gross profit margin exhibited a declining trend from early 2019 through 2020, decreasing from 41.27% in the first quarter of 2019 to a low of 37.32% by year-end 2020. From 2021 onwards, this margin demonstrated a steady recovery and consistent growth, rising to 42.91% by the last quarter of 2022, surpassing earlier levels encountered in 2019.
- Operating Profit Margin
- Operating profit margin followed a similar pattern to gross profit margin, declining gradually from 23.48% in Q1 2019 to 21.10% in Q4 2020. However, from 2021 onwards, operating profitability improved each quarter, reaching 27.76% by Q4 2022. This improvement reflects enhanced operational efficiency or effective cost management in the later periods.
- Net Profit Margin
- Net profit margin fluctuated moderately in 2019 and 2020, with a slight dip to 10.43% in Q4 2020, representing the lowest point in this timeframe. Beginning in 2021, net margin increased steadily, showing significant growth to 18.08% by the end of 2022, indicating stronger overall profitability after accounting for all expenses and taxes.
- Return on Equity (ROE)
- ROE demonstrated a marked decline beginning in early 2020, falling from 32.24% in Q1 2019 to 19.58% by Q4 2020. This decrease suggests reduced efficiency in generating shareholder equity returns during this period. However, there was a notable recovery starting in 2021, with ROE improving to a peak of 30.65% by Q3 2022 before a slight decline to 29.81% at the end of 2022, reflecting strengthened equity utilization.
- Return on Assets (ROA)
- ROA also experienced a decline during 2020, moving from about 6.19% at the close of 2019 down to 4.98% in Q4 2020, indicating diminished asset efficiency. Subsequently, ROA showed continuous improvement through 2021 and 2022, peaking at 9.09% in Q3 2022 before a minor decrease to 8.70% in the final quarter of 2022. This trend points to enhanced capability in generating profits from the company’s asset base.
Return on Sales
Return on Investment
Gross Profit Margin
United Rentals Inc., gross profit margin 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Gross profit | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||
| Gross profit margin1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||
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).
1 Q4 2022 Calculation
Gross profit margin = 100
× (Gross profitQ4 2022
+ Gross profitQ3 2022
+ Gross profitQ2 2022
+ Gross profitQ1 2022)
÷ (RevenuesQ4 2022
+ RevenuesQ3 2022
+ RevenuesQ2 2022
+ RevenuesQ1 2022)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Revenue Trends
- Revenues show a fluctuating pattern over the observed periods, with an initial growth from approximately 2,117 million USD to 2,488 million USD during 2019. Subsequently, revenues decline in the first three quarters of 2020, reaching a low near 1,939 million USD. Starting in the fourth quarter of 2020, revenues consistently increase, surpassing previous highs and reaching 3,296 million USD by the end of 2022.
- Gross Profit Trends
- Gross profit closely follows a similar pattern to revenue, with initial growth in 2019 followed by a drop in 2020. Gross profit values decrease from 965 million USD at the end of 2019 to 701 million USD in mid-2020, then progressively rise in the subsequent quarters. By the end of 2022, gross profit reaches a peak of 1,488 million USD, indicating strong profitability growth accompanying the revenue increases.
- Gross Profit Margin Analysis
- Gross profit margin demonstrates a gradual improvement over the reported periods. Initially, it declines from approximately 41.27% in early 2019 to a low of 37.32% at the end of 2020, indicating a relative decrease in profitability despite revenue fluctuations. However, starting in 2021, the margin steadily improves, moving from around 37.46% to a high of 42.91% by the end of 2022, reflecting enhanced efficiency or favorable pricing dynamics.
- Overall Observations
- The data reveals a period of contraction in both revenue and gross profit during the early- to mid-2020 timeframe, likely influenced by external factors impacting business activity. This downturn is followed by a marked recovery and expansion phase through 2021 and 2022, with revenues and gross profits reaching new highs. The improvement in gross profit margin toward the end of the series suggests better cost management or pricing power during the recovery period, implying strengthened operational performance.
Operating Profit Margin
United Rentals Inc., operating profit margin 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Operating income | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||
| Operating profit margin1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||
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).
1 Q4 2022 Calculation
Operating profit margin = 100
× (Operating incomeQ4 2022
+ Operating incomeQ3 2022
+ Operating incomeQ2 2022
+ Operating incomeQ1 2022)
÷ (RevenuesQ4 2022
+ RevenuesQ3 2022
+ RevenuesQ2 2022
+ RevenuesQ1 2022)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Operating Income
- The operating income showed an overall increasing trend over the examined periods. It started at 368 million US$ in March 2019 and experienced fluctuations in 2019 and the first half of 2020, with a notable dip to 358 million US$ in March 2020 coinciding with a challenging period. From mid-2020 onwards, operating income demonstrated a consistent upward trajectory, culminating in a peak of 1,024 million US$ by December 2022. This suggests recovery and strong growth in the company’s operational profitability.
- Revenues
- Revenues displayed some volatility initially, beginning at 2,117 million US$ at the end of March 2019 and experiencing a decline to 1,939 million US$ in June 2020. Post this period, revenues began a steady increase, rising more consistently from 2,524 million US$ in March 2022 to 3,296 million US$ by December 2022. This upward trend also supports the indication of market recovery and expansion in sales activities over the latter periods.
- Operating Profit Margin
- The operating profit margin remained relatively stable around the low 20s percentage range from 2019 through mid-2020, starting at approximately 23.48% in March 2019 and dipping to around 21.1% in December 2020. From 2021 onwards, there is a clear improvement in margin levels, climbing steadily to reach 27.76% by December 2022. This improvement suggests enhanced operational efficiency and better cost control, positively impacting profitability.
- Summary of Trends and Insights
- Overall, the data indicate that while the company faced pressure around early 2020, reflected in decreased revenues and operating income, it managed to recover strongly in the following quarters. Both revenues and operating income showed marked growth from 2021 onward. Simultaneously, the operating profit margin increased significantly during this recovery period, pointing to improved operational efficiency and a stronger earnings capacity relative to revenue. The combined positive trends across these key financial metrics suggest robust business performance and effective management strategies implemented in the latter half of the observed timeframe.
Net Profit Margin
United Rentals Inc., net profit margin 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Net income | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||
| Net profit margin1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||
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).
1 Q4 2022 Calculation
Net profit margin = 100
× (Net incomeQ4 2022
+ Net incomeQ3 2022
+ Net incomeQ2 2022
+ Net incomeQ1 2022)
÷ (RevenuesQ4 2022
+ RevenuesQ3 2022
+ RevenuesQ2 2022
+ RevenuesQ1 2022)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Net Income Trend
- Over the observed periods, net income exhibits a clear upward trajectory with some fluctuations. Initially, net income increased from 175 million USD in March 2019 to a peak of 391 million USD by September 2019, followed by a slight decline and stabilization around the 200 to 300 million USD range during 2020. Starting in 2021, net income shows a consistent and strong growth trend, reaching 639 million USD by December 2022, which marks the highest point in the series.
- Revenue Analysis
- Revenues display moderate growth with some variability. From the first quarter of 2019 to the end of that year, revenues increased from 2,117 million USD to 2,488 million USD, followed by a decline during early to mid-2020 likely associated with economic disruptions, reaching a low of 1,939 million USD in June 2020. Post mid-2020, revenue embarked on a recovery and sustained growth path, culminating at 3,296 million USD by December 2022, indicating a significant expansion compared to the initial period.
- Net Profit Margin Insights
- The net profit margin remained relatively stable around 12-13% throughout 2019 and early 2020, implying margin consistency even with fluctuating revenues and net income. However, following mid-2020, the margin experienced a notable increase, rising from approximately 10.43% in December 2020 to 18.08% by December 2022. This improvement reflects enhanced profitability and operational efficiency, as the company was able to generate higher net income relative to its revenues.
- Overall Financial Performance Patterns
- Collectively, the data portrays a company improving both its top-line and bottom-line performance over time, especially during the post-pandemic recovery phase starting late 2020. Despite temporary setbacks in the first half of 2020, the strong rebound in revenues combined with growing net profit margins highlights effective management actions, cost controlling measures, or pricing strategies. The consistent net income growth paired with expanding margins suggests increased profitability and robust financial health.
Return on Equity (ROE)
United Rentals Inc., ROE 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Net income | |||||||||||||||||||||
| Stockholders’ equity | |||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||
| ROE1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||
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).
1 Q4 2022 Calculation
ROE = 100
× (Net incomeQ4 2022
+ Net incomeQ3 2022
+ Net incomeQ2 2022
+ Net incomeQ1 2022)
÷ Stockholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of quarterly financial performance reveals several notable trends over the examined periods. Net income demonstrates a generally upward trajectory, with fluctuations that reflect seasonal and external economic factors. Initially, net income experienced growth from early 2019 through the end of that year, moving from 175 million to 338 million US dollars. This was followed by a dip in the first half of 2020, likely influenced by macroeconomic conditions, before a recovery and substantial increase in the latter part of 2020 and throughout 2021 and 2022. By the final quarter of 2022, net income reached its peak within the timeframe at 639 million US dollars, indicating strong profitability momentum.
Stockholders’ equity similarly exhibited a generally positive trend, increasing from 3,375 million US dollars at the start of 2019 to 7,062 million US dollars by the end of 2022. The growth in equity was relatively steady, though with moderate variability in some quarters, reflecting ongoing capital retention and accumulation over time. This continuous increase suggests a strengthening financial position and potential reinvestment of earnings.
Return on equity (ROE), a key profitability metric, started at a relatively high level near 32% in early 2019, indicating efficient use of equity capital. However, it showed a decline through 2020, dropping to under 20% by the end of that year. This decline aligns with the period when net income growth was subdued despite rising equity. From 2021 onward, ROE improved again, reaching approximately 30% by late 2022, which denotes a recovery in generating returns from the company’s equity base.
- Net Income
- Exhibited a marked increase overall with some short-term declines; notable resilience and recovery seen post mid-2020, culminating in the highest quarterly earnings in late 2022.
- Stockholders’ Equity
- Displayed consistent growth over the four-year span, supporting a stronger capital foundation and indicating profitability retention and possible external capital inflows.
- Return on Equity (ROE)
- Showed a peak at the beginning of the period followed by a substantial decline through 2020, then a progressive rebound reaching near initial high points by the end of 2022, reflecting shifting efficiency in equity utilization.
In summary, the data indicate a recovery and strengthening in financial performance following a downturn in 2020. The company improved profitability and capital efficiency, as evidenced by rising net income and ROE, alongside a steadily growing equity base. These trends suggest an overall positive trajectory in shareholder value and operational effectiveness through the observed quarters.
Return on Assets (ROA)
United Rentals Inc., ROA 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Net income | |||||||||||||||||||||
| Total assets | |||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||
| ROA1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||
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).
1 Q4 2022 Calculation
ROA = 100
× (Net incomeQ4 2022
+ Net incomeQ3 2022
+ Net incomeQ2 2022
+ Net incomeQ1 2022)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Income
- The net income exhibited variability over the quarters but demonstrated a general upward trend from 2019 through 2022. Initially, there was a notable increase from 175 million USD in March 2019 to 391 million USD by September 2019, followed by fluctuations in the subsequent quarters. The impact of the early 2020 period reflected some volatility and slight decline around March to September 2020, likely influenced by external market conditions. From late 2020 onwards, however, a consistent rise was apparent, culminating in a net income of 639 million USD in December 2022, representing a substantial improvement compared to earlier years.
- Total Assets
- Total assets remained relatively stable between the beginning of 2019 and early 2020, hovering around 18 to 19 billion USD. There was a slight decrease during the first half of 2020, coinciding with a dip in net income during that period. From mid-2020 onwards, asset values showed a moderate upward trend, particularly apparent in 2021 and accelerating through 2022, peaking at approximately 24.2 billion USD by the end of 2022. This increase indicates ongoing asset growth, reflecting potential investments or acquisitions contributing to the company's expanding asset base.
- Return on Assets (ROA)
- The ROA percentage reflected strong and improving profitability relative to asset size over the observed period. It remained in the range of approximately 5.7% to 6.2% throughout 2019 and early 2020, with a slight decline observed mid-2020 corresponding to a dip in net income. Starting in late 2020, ROA showed a positive and sustained upward trajectory, rising from around 5.0% to reach a peak near 9.1% in the third quarter of 2022. Although there was a minor decrease towards the end of 2022, the overall trend signifies enhanced efficiency in asset utilization to generate income.
- Overall Summary
- The financial data reveals a resilient and improving financial performance through the analyzed quarters. Despite experiencing some short-term fluctuations around mid-2020, net income and total assets increased markedly over the period. The return on assets also strengthened significantly, indicating better management of the asset base to generate earnings. These trends suggest a solid recovery and expansion phase post-2020, with robust growth signaling positive operational and financial management outcomes.