Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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), 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).
The financial data indicates evolving trends in profitability and efficiency ratios over the analyzed periods. The margins and returns show varying patterns, some reflecting cyclical effects and others suggesting steady improvement or decline.
- Gross Profit Margin
- The gross profit margin exhibits a generally decreasing trend from Q2 2018 through Q4 2020, falling from 41.8% to 37.32%. After this low, the margin steadily increases through 2021 and 2022, reaching 42.91% by Q4 2022, surpassing early period levels. This indicates an initial compression in basic profitability followed by a recovery and eventual improvement in the core profit generating capability.
- Operating Profit Margin
- The operating profit margin also declines from 24.25% in Q2 2018 to a trough of 21.1% in Q4 2020, mirroring the gross margin pattern. However, from 2021 onwards, it consistently rises, achieving 27.76% in Q4 2022. This improvement suggests enhanced cost control or operational efficiencies, contributing to broader profitability beyond gross margin improvements.
- Net Profit Margin
- Net profit margin shows a less volatile but clear downward trend from 13.62% in Q2 2018 to a low of 10.43% in Q4 2020. From early 2021, it gradually ascends to 18.08% by Q4 2022, marking a considerable increase in bottom-line profitability. This pattern may result from improved management of operating expenses, financing costs, or tax efficiencies following the mid-period dip.
- Return on Equity (ROE)
- ROE begins at 32.21% in Q2 2018 and holds relatively steady until a noticeable decline starting in Q3 2019, reaching a low of 19.58% in Q4 2020. From 2021, ROE recovers substantially, peaking at 30.65% in Q3 2022 before slightly reducing to 29.81% in Q4 2022. This trajectory suggests periods of fluctuating net income relative to shareholders' equity, with a significant recovery indicating better utilization of equity capital post-2020.
- Return on Assets (ROA)
- ROA remains relatively stable between 5.71% and 6.22% from mid-2018 to mid-2020, then declines sharply to 4.98% in Q4 2020. Following this low point, ROA shows a consistent upward trend through 2021 and 2022, peaking at 9.09% in Q4 2022 before a slight decrease to 8.7%. This improvement reflects enhanced asset efficiency and profitability despite the earlier downturn, indicating better use of the company’s asset base in recent periods.
Overall, the data reveals a period of margin contraction and reduced returns on equity and assets around 2019-2020, likely influenced by external or operational challenges. Subsequently, there is a clear recovery and strengthening of profitability and efficiency metrics into 2021 and 2022. The sustained improvement suggests effective management actions to enhance margins, control costs, and improve asset utilization, resulting in stronger financial performance in the latest quarters.
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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Gross profit | 1,488) | 1,366) | 1,150) | 992) | 1,161) | 1,103) | 875) | 714) | 869) | 886) | 701) | 727) | 965) | 1,033) | 911) | 761) | 998) | 938) | 782) | 646) | ||||||
| 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) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| Gross profit margin1 | 42.91% | 41.98% | 41.30% | 40.57% | 39.66% | 38.63% | 37.96% | 37.46% | 37.32% | 37.66% | 38.03% | 38.85% | 39.25% | 40.25% | 40.87% | 41.27% | 41.80% | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | ||||||||||||||||||||||||||
| Boeing Co. | 5.26% | -1.41% | 2.74% | 3.20% | 4.84% | -0.25% | -1.35% | -7.82% | -9.78% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 26.91% | 26.14% | 25.52% | 25.71% | 26.30% | 27.08% | 26.83% | 25.98% | 25.47% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 33.19% | 32.83% | 32.55% | 32.36% | 32.28% | 32.14% | 32.23% | 30.80% | 30.52% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| GE Aerospace | 24.55% | 24.52% | 25.22% | 24.26% | 24.19% | 24.97% | 22.43% | 18.80% | 17.26% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Honeywell International Inc. | 36.99% | 35.56% | 34.22% | 32.95% | 31.98% | 32.34% | 32.06% | 31.52% | 32.07% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Lockheed Martin Corp. | 12.56% | 12.99% | 13.39% | 13.36% | 13.52% | 13.34% | 13.00% | 13.26% | 13.23% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 20.38% | 20.49% | 20.17% | 19.94% | 19.40% | 17.59% | 15.79% | 13.98% | 15.08% | — | — | — | — | — | — | — | — | — | — | — | ||||||
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
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 × (1,488 + 1,366 + 1,150 + 992)
÷ (3,296 + 3,051 + 2,771 + 2,524)
= 42.91%
2 Click competitor name to see calculations.
The financial data over the observed periods demonstrates several notable trends in revenues, gross profit, and gross profit margin.
- Revenues
- Revenues exhibit a generally increasing trend from the first quarter of 2018 through the last quarter of 2022. Starting at approximately 1,734 million USD in March 2018, revenues reached 3,296 million USD by December 2022. Despite some fluctuations, including a noticeable dip around early 2020 coinciding with the onset of the COVID-19 pandemic, the overall trajectory remains positive. This growth suggests an expanding business scale or improved sales performance over these years.
- Gross Profit
- Gross profit values follow a similar upward trend to revenues, increasing from 646 million USD in March 2018 to 1,488 million USD by December 2022. Notable fluctuations occur, especially during 2020, where gross profit declined alongside revenues, reflecting economic or operational impacts during that period. However, the recovery post-2020 is significant, indicating resilient profitability and effective cost management. The highest recorded gross profit occurs at the end of 2022, which aligns with the peak revenue periods observed.
- Gross Profit Margin
- The gross profit margin was not available in the earlier periods but is reported starting from December 2018. The margin demonstrates a gradual improvement from around 41.8% to 42.91% by the end of 2022. This incremental increase over time indicates enhanced efficiency in controlling costs relative to revenues or a shift towards higher-margin products or services. Even during the revenue dip in 2020, the margin maintains stability, reflecting an ability to protect profitability despite market challenges.
In summary, the analyzed data reveals a consistent growth in both revenues and gross profit over the examined periods, with a resilient recovery following the downturn in early 2020. The improving gross profit margin further implies ongoing operational efficiency improvements, contributing to increased profitability on a relative basis. These trends collectively suggest strengthening financial performance and effective management over the multi-year timeframe.
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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Operating income | 1,024) | 921) | 715) | 572) | 745) | 679) | 481) | 372) | 510) | 551) | 381) | 358) | 599) | 656) | 529) | 368) | 563) | 578) | 470) | 340) | ||||||
| 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) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| Operating profit margin1 | 27.76% | 26.55% | 25.41% | 24.32% | 23.44% | 22.15% | 21.73% | 21.44% | 21.10% | 21.70% | 22.14% | 22.89% | 23.01% | 23.00% | 23.08% | 23.48% | 24.25% | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||||||||
| Boeing Co. | -5.33% | -11.99% | -6.98% | -6.53% | -4.66% | -10.80% | -12.18% | -20.36% | -21.95% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 13.97% | 14.56% | 13.81% | 13.87% | 14.27% | 14.56% | 13.82% | 12.32% | 11.67% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 14.55% | 13.90% | 16.33% | 15.97% | 15.69% | 15.50% | 12.54% | 10.81% | 11.45% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| GE Aerospace | 6.05% | 7.05% | 8.12% | 7.31% | 8.58% | 7.86% | 6.82% | 4.72% | 5.49% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Honeywell International Inc. | 18.12% | 17.55% | 17.31% | 17.37% | 18.03% | 18.36% | 17.95% | 16.90% | 17.45% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Lockheed Martin Corp. | 12.65% | 13.15% | 13.47% | 13.50% | 13.61% | 13.50% | 13.19% | 13.19% | 13.22% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 8.07% | 7.93% | 7.81% | 7.75% | 7.70% | 5.93% | 4.61% | -3.59% | -3.34% | — | — | — | — | — | — | — | — | — | — | — | ||||||
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
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 × (1,024 + 921 + 715 + 572)
÷ (3,296 + 3,051 + 2,771 + 2,524)
= 27.76%
2 Click competitor name to see calculations.
- Operating Income
- The operating income exhibits a generally increasing trend over the observed periods from March 2018 to December 2022. Starting at $340 million in March 2018, it peaks at $745 million in December 2021 and continues to grow, reaching $1,024 million by December 2022. Some fluctuations are noticeable, for instance, a dip to $358 million in March 2020, likely reflecting external challenges during that period, followed by steady recovery and growth thereafter.
- Revenues
- Revenues show a consistent upward trajectory from $1,734 million in March 2018 to $3,296 million in December 2022. The data reveals minor declines, particularly evident in the March 2020 and June 2020 quarters where revenues dropped to $2,125 million and $1,939 million respectively, indicating a possible impact from market disturbances in early 2020. Subsequent quarters demonstrate a strong rebound and continued revenue expansion, surpassing previous highs through 2021 and 2022.
- Operating Profit Margin
- The operating profit margin, available from December 2018 onward, portrays a clear positive trend. Starting at approximately 24.25% in December 2018, it dips slightly during mid-2020 to around 21.10% but then shows a marked improvement throughout 2021 and 2022. By December 2022, the margin reaches 27.76%, the highest in the period, indicating enhanced operational efficiency or improved pricing/ cost management despite fluctuating revenue levels.
- Summary of Trends
- Overall, the data exhibits resilience and growth despite the noticeable disruptions in early 2020. Revenues and operating income experienced temporary declines but recovered strongly, reaching record levels by the end of 2022. The operating profit margin's steady increase suggests improved profitability and operational control. This combination of rising revenues, growing operating income, and expanding margins reflects a strengthening financial performance over the analyzed timeframe.
Net Profit Margin
United Rentals Inc., net profit margin calculation (quarterly data)
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Net income | 639) | 606) | 493) | 367) | 481) | 409) | 293) | 203) | 297) | 208) | 212) | 173) | 338) | 391) | 270) | 175) | 310) | 333) | 270) | 183) | ||||||
| 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) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| Net profit margin1 | 18.08% | 17.51% | 16.41% | 15.22% | 14.27% | 13.04% | 11.36% | 10.87% | 10.43% | 10.69% | 12.37% | 12.52% | 12.55% | 12.46% | 12.32% | 12.91% | 13.62% | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||||||||
| Boeing Co. | -7.41% | -13.75% | -8.69% | -8.00% | -6.75% | -13.50% | -14.30% | -20.87% | -20.42% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 11.85% | 13.70% | 13.19% | 13.02% | 13.47% | 11.28% | 10.17% | 8.53% | 7.68% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 11.86% | 11.36% | 11.70% | 11.21% | 10.92% | 10.60% | 9.86% | 8.05% | 7.90% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| GE Aerospace | 0.31% | -8.10% | -6.18% | -6.70% | -9.17% | -0.06% | -3.39% | -4.68% | 7.81% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Honeywell International Inc. | 14.00% | 15.38% | 14.74% | 15.30% | 16.11% | 15.80% | 14.65% | 14.17% | 14.64% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Lockheed Martin Corp. | 8.69% | 9.07% | 7.33% | 9.45% | 9.42% | 9.13% | 10.69% | 10.53% | 10.45% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 7.75% | 6.76% | 6.84% | 6.47% | 6.00% | 5.20% | 3.51% | -4.44% | -6.22% | — | — | — | — | — | — | — | — | — | — | — | ||||||
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 profit margin = 100
× (Net incomeQ4 2022
+ Net incomeQ3 2022
+ Net incomeQ2 2022
+ Net incomeQ1 2022)
÷ (RevenuesQ4 2022
+ RevenuesQ3 2022
+ RevenuesQ2 2022
+ RevenuesQ1 2022)
= 100 × (639 + 606 + 493 + 367)
÷ (3,296 + 3,051 + 2,771 + 2,524)
= 18.08%
2 Click competitor name to see calculations.
The financial data exhibits notable patterns and trends over the presented quarterly periods for key performance indicators such as net income, revenues, and net profit margin.
- Net Income
- Net income demonstrates a generally increasing trend throughout the entire time frame. Early periods show fluctuations, with a low point around March 31, 2020, corresponding with 173 million US dollars, before resuming growth. From 2021 onwards, a clear upward trajectory is observed, reaching a peak of 639 million US dollars by the end of 2022. This suggests improving profitability and operational effectiveness over time.
- Revenues
- Revenues follow a somewhat cyclical pattern with several peaks and troughs over the quarters. Initially, revenues rise steadily from 1.734 billion US dollars in the first quarter of 2018 up to 2.488 billion US dollars by the third quarter of 2019. A decline occurs during 2020, particularly in the second quarter (1.939 billion US dollars), likely reflecting external economic challenges during that period. Subsequently, revenues again increase consistently from 2021 through 2022, culminating at 3.296 billion US dollars by the end of 2022, indicating recovery and growth in business volumes.
- Net Profit Margin
- Net profit margin data, available from the fourth quarter of 2018, indicates a steady improvement over time. Starting around 13.62%, margins slightly decrease during 2019 and 2020, reaching lows near 10.43% in mid-2020. Thereafter, a continuous upward trend occurs, culminating in an 18.08% margin by the last quarter of 2022. This increase demonstrates enhanced efficiency and profitability relative to revenues.
Overall, the firm exhibits resilience and progressive enhancement in financial performance following a dip during the economic disruptions in early 2020. Both revenue and net income recover and grow substantially towards the end of the data period, accompanied by widening profit margins that imply improved cost management and pricing power.
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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Net income | 639) | 606) | 493) | 367) | 481) | 409) | 293) | 203) | 297) | 208) | 212) | 173) | 338) | 391) | 270) | 175) | 310) | 333) | 270) | 183) | ||||||
| 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) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| ROE1 | 29.81% | 30.65% | 28.94% | 25.48% | 23.13% | 21.92% | 19.65% | 19.39% | 19.58% | 22.37% | 28.51% | 32.24% | 30.65% | 31.40% | 31.28% | 32.24% | 32.21% | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||||||||||
| Boeing Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 42.25% | 47.28% | 42.96% | 38.07% | 39.37% | 30.90% | 26.09% | 20.73% | 19.56% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 14.45% | 14.26% | 14.12% | 13.35% | 13.06% | 12.95% | 12.23% | 9.54% | 9.44% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| GE Aerospace | 0.62% | -18.56% | -12.75% | -12.20% | -16.17% | -0.11% | -7.29% | -9.82% | 16.04% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Honeywell International Inc. | 29.74% | 30.36% | 28.96% | 28.58% | 29.85% | 30.67% | 27.73% | 25.71% | 27.23% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Lockheed Martin Corp. | 61.86% | 49.05% | 41.16% | 62.10% | 57.62% | 62.90% | 109.51% | 110.16% | 113.60% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 7.16% | 6.36% | 6.34% | 5.79% | 5.29% | 4.65% | 3.07% | -3.74% | -4.88% | — | — | — | — | — | — | — | — | — | — | — | ||||||
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
ROE = 100
× (Net incomeQ4 2022
+ Net incomeQ3 2022
+ Net incomeQ2 2022
+ Net incomeQ1 2022)
÷ Stockholders’ equity
= 100 × (639 + 606 + 493 + 367)
÷ 7,062 = 29.81%
2 Click competitor name to see calculations.
Analysis of the quarterly financial data reveals several notable trends in the company’s performance indicators over the observed periods.
- Net Income
- The net income exhibits a generally positive growth trajectory from 2018 through 2022, with some fluctuations in between. Initial figures in 2018 show net income increasing from 183 million US dollars in the first quarter to a peak of 333 million in the third quarter, followed by a slight decline towards the year-end. In 2019, net income remained relatively robust, experiencing periodic increases, notably peaking at 391 million in Q3 before a slight decrease in Q4.
- The year 2020 shows a dip in net income early in the year, likely reflective of economic disturbances, with values lower in the first three quarters compared to previous years but recovering to 297 million in Q4. From 2021 onward, the net income demonstrated strong recovery and consistent growth, reaching the highest observed value of 639 million US dollars in Q4 2022, indicating enhanced profitability and possibly improved operational efficiency or market conditions.
- Stockholders’ Equity
- Stockholders’ equity shows a steady upward trend throughout the period. Starting at approximately 3,058 million US dollars in Q1 2018, the equity base expands progressively each quarter into 2022. There are minor fluctuations, but the overall trajectory is positive, with equity rising to over 7,000 million US dollars by Q4 2022. This indicates ongoing value accumulation and possibly retained earnings or additional capital injections over time.
- Return on Equity (ROE)
- Return on equity, recorded from 2018 Q4 onwards, initially hovers around the low thirties percentile range, peaking slightly above 32%. After a peak in early periods, ROE exhibits a gradual decline through 2020, reaching a low near 19.5%. However, starting from 2021, there is a progressive recovery in ROE values, increasing steadily each quarter to nearly 30% by Q4 2022. This pattern suggests that after a temporary decline, the company improved its efficiency in generating profits from shareholders’ equity in recent periods.
In summary, the company demonstrated strong growth in net income and stockholders’ equity over the analyzed period, with some interruption potentially linked to broader economic factors in 2020. The upward recovery in ROE from 2021 reflects enhanced effectiveness in utilizing equity capital to produce earnings, aligning with the overall positive earnings performance.
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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Net income | 639) | 606) | 493) | 367) | 481) | 409) | 293) | 203) | 297) | 208) | 212) | 173) | 338) | 391) | 270) | 175) | 310) | 333) | 270) | 183) | ||||||
| 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) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| ROA1 | 8.70% | 9.09% | 8.41% | 7.69% | 6.83% | 5.92% | 5.10% | 5.24% | 4.98% | 5.20% | 6.22% | 6.21% | 6.19% | 5.91% | 5.71% | 5.85% | 6.04% | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||||
| Boeing Co. | -3.60% | -6.14% | -3.90% | -3.60% | -3.03% | -5.77% | -5.92% | -7.85% | -7.80% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 8.18% | 9.11% | 8.33% | 7.90% | 7.84% | 6.37% | 5.37% | 4.26% | 3.83% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 7.03% | 6.67% | 6.58% | 6.30% | 6.30% | 6.06% | 5.12% | 4.20% | 4.43% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| GE Aerospace | 0.12% | -3.23% | -2.38% | -2.48% | -3.28% | -0.02% | -1.03% | -1.34% | 2.25% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Honeywell International Inc. | 7.97% | 8.92% | 8.16% | 8.29% | 8.60% | 8.53% | 7.78% | 7.28% | 7.40% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Lockheed Martin Corp. | 10.84% | 11.28% | 9.09% | 12.06% | 12.41% | 11.69% | 13.71% | 13.52% | 13.47% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 3.27% | 2.82% | 2.81% | 2.63% | 2.39% | 2.09% | 1.37% | -1.67% | -2.17% | — | — | — | — | — | — | — | — | — | — | — | ||||||
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
ROA = 100
× (Net incomeQ4 2022
+ Net incomeQ3 2022
+ Net incomeQ2 2022
+ Net incomeQ1 2022)
÷ Total assets
= 100 × (639 + 606 + 493 + 367)
÷ 24,183 = 8.70%
2 Click competitor name to see calculations.
The analysis of the quarterly financial trends reveals several notable patterns related to the company's profitability, asset base, and return on assets (ROA) over the examined periods.
- Net Income
- The net income figures display a fluctuating yet generally upward trend from 2018 through 2022. Initial quarters in 2018 saw moderate net income values gradually increasing into 2019, followed by a marked dip during the early stages of 2020. However, the latter part of 2020 through 2021 showed a recovery and significant growth, peaking in the last quarter of 2021. The upward trajectory continued more robustly into 2022, reaching the highest net income levels observed in this timeframe in the last two quarters of 2022. This upward movement suggests improving profitability despite some interruptions.
- Total Assets
- The total assets exhibited a steady expansion from early 2018 through mid-2019, peaking around the third quarter of 2019. A slight contraction occurred during late 2019 and into 2020, aligning with external economic disruptions during that period. Post-2020, there is a gradual and consistent increase in total assets, with a more substantial rise evident toward the end of 2022, culminating in the highest asset base recorded. This indicates continued investment or acquisition activities and growing resource strength over the observed periods.
- Return on Assets (ROA)
- ROA values commenced being reported from late 2018 and remained relatively stable around 5.7% to 6.2% through 2019. A decline is noticeable during 2020, coinciding with the asset and income fluctuations during that period, reaching a low near 5%. From 2021 onwards, the ROA improved steadily, demonstrating enhanced efficiency in generating returns from the asset base. By late 2022, ROA peaked around 9%, reflecting significant gains in profitability relative to assets, despite a notable increase in the asset base. This suggests better utilization of assets driving improved earnings.
In summary, the company experienced a period of volatility around 2020, likely due to external economic factors. However, it subsequently demonstrated a robust recovery and growth phase, increasing both net income and asset holdings while improving asset efficiency as evidenced by rising ROA ratios. These trends point to strengthening financial health and operational effectiveness in recent periods.