Analysis of Reportable Segments
United Rentals Inc. operates in 2 segments: General rentals and Specialty.
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- Balance Sheet: Assets
- Common-Size Balance Sheet: Assets
- Analysis of Profitability Ratios
- Analysis of Liquidity Ratios
- Common Stock Valuation Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Selected Financial Data since 2005
- Return on Equity (ROE) since 2005
- Return on Assets (ROA) since 2005
- Price to Book Value (P/BV) since 2005
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Segment Profit Margin
United Rentals Inc., profit margin by reportable segment
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| General rentals | |||||
| Specialty |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
- General rentals profit margin
- The profit margin for General rentals initially decreased from 35.01% in 2018 to 29.17% in 2020, indicating a downward trend over the first three years. However, starting in 2021, the margin showed a reversal, increasing to 30.87% and further improving to 33.84% in 2022. This suggests a gradual recovery and strengthening of profitability within this segment after the 2020 low point.
- Specialty profit margin
- The Specialty segment exhibited a relatively stable profit margin throughout the period, fluctuating slightly between 44.76% in 2018 and 43.82% in 2022. The margin dipped marginally in 2019 to 41.78%, remained consistent in 2020, and experienced a modest increase to 42.2% in 2021 before slightly rising again in 2022. Overall, the Specialty segment maintained a strong and steady profitability compared to General rentals.
- Comparison and insights
- While the Specialty segment consistently outperformed General rentals in terms of profit margin, the latter demonstrated a notable decline followed by a recovery trend. The Specialty profit margins’ stability reflects consistent operational efficiency or market conditions, whereas the General rentals segment’s variability could be attributed to external challenges or internal adjustments that were addressed post-2020. The upward trend in General rentals margins in the last two years signals potential improvements in cost management or pricing strategies.
Segment Profit Margin: General rentals
United Rentals Inc.; General rentals; segment profit margin calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Equipment rentals gross profit | |||||
| Revenue | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Segment profit margin = 100 × Equipment rentals gross profit ÷ Revenue
= 100 × ÷ =
- Equipment Rentals Gross Profit
- The equipment rentals gross profit exhibited variability over the five-year period. It increased from $2,293 million in 2018 to $2,407 million in 2019, followed by a decline to $1,954 million in 2020. Subsequently, it recovered to $2,269 million in 2021 and reached its highest point of $2,905 million in 2022. This pattern indicates a significant dip in 2020, likely influenced by external factors affecting operations, with a strong rebound thereafter.
- Revenue
- Revenue showed a general upward trend from 2018 through 2022, increasing from $6,550 million to $8,584 million over the period. Despite a decrease in 2020, when revenue fell to $6,699 million from $7,436 million in 2019, the subsequent years demonstrated recovery and growth, with revenues surpassing previous highs by 2022.
- Segment Profit Margin
- The segment profit margin decreased consistently from 35.01% in 2018 to its lowest point of 29.17% in 2020. After 2020, the margin showed improvement, rising to 30.87% in 2021 and further to 33.84% in 2022, though it did not return to the initial 2018 level. This suggests profitability pressures during 2020, with gradual margin recovery in the following years.
Segment Profit Margin: Specialty
United Rentals Inc.; Specialty; segment profit margin calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Equipment rentals gross profit | |||||
| Revenue | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Segment profit margin = 100 × Equipment rentals gross profit ÷ Revenue
= 100 × ÷ =
- Revenue Trends
- Revenue for the Specialty segment showed a consistent upward trend over the five-year period. Starting at $1,497 million in 2018, revenue increased each year except for a slight dip in 2020, where it fell to $1,831 million from $1,915 million in 2019. However, the revenue rebounded strongly in subsequent years, reaching $2,365 million in 2021 and $3,058 million in 2022, marking overall significant growth.
- Equipment Rentals Gross Profit
- The equipment rentals gross profit displayed a similar increasing pattern. It rose from $670 million in 2018 to $800 million in 2019, then slightly declined to $765 million in 2020, paralleling the revenue pattern. After 2020, the gross profit increased sharply, reaching $998 million in 2021 and $1,340 million in 2022, indicating improved profitability in the latter years.
- Segment Profit Margin
- The segment profit margin started at 44.76% in 2018 and experienced a decline to 41.78% in 2019 and maintained that level in 2020. From 2021, it saw a modest improvement to 42.2% and further increased to 43.82% in 2022. Despite fluctuations, the margin remained relatively stable, showing resilience and slight recovery after the dip during 2019 and 2020.
- Overall Insights
- The data reveals a period of moderate volatility around 2019-2020, with declines in both revenue and gross profit, likely reflecting challenging market conditions. However, from 2021 onwards, the segment demonstrated strong recovery and growth, with revenues and gross profits reaching their highest levels. The profit margin, while initially decreasing, showed signs of stabilization and slight improvement in the latter years, suggesting enhanced operational efficiency or pricing power. The overall trajectory indicates a strengthening segment performance over the analyzed period.
Segment Return on Assets (Segment ROA)
United Rentals Inc., ROA by reportable segment
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| General rentals | |||||
| Specialty |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
- General Rentals ROA Trend
- The return on assets (ROA) for the General Rentals segment exhibited moderate fluctuations over the analyzed five-year period. Starting at 14.7% in 2018, it showed a slight increase to 15.01% in 2019, followed by a decline to 12.98% in 2020. Subsequently, the ROA rebounded to 14.1% in 2021 and continued its upward movement to 14.82% in 2022. This pattern suggests a temporary setback in 2020, potentially attributable to external factors, with a recovery trajectory in the following years.
- Specialty ROA Trend
- The Specialty segment consistently delivered higher ROA percentages compared to General Rentals throughout the period. Beginning at 26.42% in 2018, there was a gradual increase to 27.27% in 2019, and the value remained relatively stable at 27.16% in 2020. However, 2021 saw a noticeable decrease to 23.73%, before a significant recovery to 29.26% in 2022, marking the highest point in the period. The volatility in 2021 contrasted with the otherwise strong and fairly stable performance, indicating some challenges that were effectively managed by the next year.
- Comparative Insights
- Throughout the observed period, the Specialty segment consistently outperformed the General Rentals segment in terms of ROA, with a difference ranging from approximately 10 to 15 percentage points. Both segments demonstrated resilience and recovery following a dip in 2020, suggesting effective operational responses to adverse conditions. The Specialty segment's ROA variability was more pronounced, particularly evident in the decline and subsequent increase between 2021 and 2022, whereas the General Rentals segment presented a more stable, albeit lower, ROA profile.
Segment ROA: General rentals
United Rentals Inc.; General rentals; segment ROA calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Equipment rentals gross profit | |||||
| Total assets | |||||
| Segment Profitability Ratio | |||||
| Segment ROA1 | |||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Segment ROA = 100 × Equipment rentals gross profit ÷ Total assets
= 100 × ÷ =
- Equipment Rentals Gross Profit
- The gross profit displayed fluctuations over the observed period. It experienced growth from US$2,293 million in 2018 to US$2,407 million in 2019. However, there was a notable decline to US$1,954 million in 2020, which could be suggestive of operational challenges or market conditions during that year. Subsequently, the gross profit recovered, reaching US$2,269 million in 2021 and further increasing substantially to US$2,905 million in 2022. This indicates a strong recovery and growth in profitability in the most recent year.
- Total Assets
- Total assets showed a general upward trend with some variability. The asset base increased slightly from US$15,597 million in 2018 to US$16,036 million in 2019. It then decreased to US$15,051 million in 2020, aligning with the gross profit dip, possibly reflecting asset optimization or divestiture. The assets rebounded to US$16,087 million in 2021 and significantly grew to US$19,604 million by 2022. This growth suggests substantial investment or acquisition activity contributing to an expanded asset base in 2022.
- Segment Return on Assets (ROA)
- The segment ROA showed moderate variation over the timeframe. It started at 14.7% in 2018, peaked slightly at 15.01% in 2019, and then dropped to the lowest point of 12.98% in 2020. This dip corresponds with the reductions observed in gross profit and total assets for the same year, indicating reduced asset efficiency or profitability. In the following years, ROA improved to 14.1% in 2021 and further increased to 14.82% in 2022, reflecting enhanced utilization of assets linked to the improved profitability and asset growth in the latter years.
Segment ROA: Specialty
United Rentals Inc.; Specialty; segment ROA calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Equipment rentals gross profit | |||||
| Total assets | |||||
| Segment Profitability Ratio | |||||
| Segment ROA1 | |||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Segment ROA = 100 × Equipment rentals gross profit ÷ Total assets
= 100 × ÷ =
- Equipment Rentals Gross Profit
- The equipment rentals gross profit demonstrated an overall upward trend from 2018 through 2022. Beginning at $670 million in 2018, it increased substantially to $800 million in 2019, followed by a slight decline to $765 million in 2020. Subsequently, there was a significant rebound, reaching $998 million in 2021 and further increasing to $1,340 million in 2022. This pattern suggests resilience and strong growth in profitability after a modest downturn in 2020.
- Total Assets
- The total assets of the segment exhibited steady growth over the analyzed period. Starting at $2,536 million in 2018, assets grew to $2,934 million in 2019 but then decreased slightly to $2,817 million in 2020. From 2020 onward, assets expanded notably to $4,205 million in 2021 and further to $4,579 million in 2022. This increase indicates significant investment or acquisition activity enhancing the segment's asset base, particularly post-2020.
- Segment Return on Assets (ROA)
- The segment ROA remained relatively stable with minor fluctuations from 2018 to 2022. It started at 26.42% in 2018, experienced a modest rise to 27.27% in 2019, and slightly declined to 27.16% in 2020. A more noticeable dip occurred in 2021, where ROA decreased to 23.73%. However, the segment demonstrated a robust recovery in 2022, achieving the highest ROA of the period at 29.26%. This pattern reflects effective asset utilization, especially in the latter part of the period after a temporary efficiency decline in 2021.
Segment Asset Turnover
United Rentals Inc., asset turnover by reportable segment
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| General rentals | |||||
| Specialty |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
- General rentals asset turnover
- The asset turnover ratio for this segment exhibited a slight upward trend from 0.42 in 2018 to a peak of 0.46 in both 2019 and 2021. There was a marginal decline to 0.44 in 2022. Overall, the ratio remained relatively stable with minor fluctuations around the mid-0.40 range across the five-year period.
- Specialty asset turnover
- This segment showed more variability in asset turnover ratios throughout the period. It increased from 0.59 in 2018 to 0.65 in 2019 and sustained that level in 2020. In 2021, the ratio decreased noticeably to 0.56, followed by a sharp rebound to the highest level in the series at 0.67 in 2022. This pattern suggests responsiveness to changing operational dynamics within the specialty segment.
- Comparative insights
- The specialty segment consistently demonstrated higher asset turnover ratios compared to the general rentals segment, indicating greater efficiency in utilizing assets to generate revenue. Despite some volatility, specialty assets tended to generate more revenue per unit of asset value than general rentals. The stability in the general rentals ratio versus the fluctuation in specialty highlights differing operational characteristics and possibly distinct market or asset management strategies between the segments.
Segment Asset Turnover: General rentals
United Rentals Inc.; General rentals; segment asset turnover calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenue | |||||
| Total assets | |||||
| Segment Activity Ratio | |||||
| Segment asset turnover1 | |||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Segment asset turnover = Revenue ÷ Total assets
= ÷ =
- Revenue
- The revenue demonstrated a generally positive trend over the given period. Starting at $6,550 million in 2018, it increased to $7,436 million in 2019, reflecting growth of approximately 13.5%. However, there was a noticeable decline in 2020, with revenue decreasing to $6,699 million, which may suggest a period of operational or market challenges during that year. The revenue recovered in 2021, reaching $7,351 million, and further increased significantly in 2022 to $8,584 million, indicating strong growth momentum towards the end of the period.
- Total Assets
- Total assets showed a stable yet fluctuating pattern. Assets grew from $15,597 million in 2018 to $16,036 million in 2019, but then decreased slightly to $15,051 million in 2020. A rebound was observed in 2021 with assets increasing to $16,087 million, followed by a marked increase to $19,604 million in 2022. This upward shift in 2022 suggests investment or acquisition activity and an expansion of the company's asset base.
- Segment Asset Turnover
- The segment asset turnover ratio, which measures the efficiency of asset utilization to generate revenue, remained relatively stable but with slight variations. It improved from 0.42 in 2018 to 0.46 in 2019, suggesting better asset productivity. The ratio modestly declined to 0.45 in 2020 and returned to 0.46 in 2021, illustrating consistent operational efficiency despite fluctuations in revenue and assets. In 2022, the ratio decreased to 0.44, indicating a slight reduction in the efficiency of asset use relative to revenue growth.
Segment Asset Turnover: Specialty
United Rentals Inc.; Specialty; segment asset turnover calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenue | |||||
| Total assets | |||||
| Segment Activity Ratio | |||||
| Segment asset turnover1 | |||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Segment asset turnover = Revenue ÷ Total assets
= ÷ =
- Revenue Trends
- Revenue for the Specialty segment exhibited a generally upward trajectory over the five-year period. Beginning at 1,497 million USD in 2018, it increased significantly to 1,915 million USD in 2019. There was a slight decline in 2020 to 1,831 million USD, potentially reflecting external challenges, followed by a strong rebound to 2,365 million USD in 2021. The growth continued into 2022, reaching 3,058 million USD, which represents the highest revenue figure within the observed timeframe.
- Total Assets Evolution
- Total assets for the segment showed an overall increasing pattern as well. Starting at 2,536 million USD in 2018, total assets grew steadily to 2,934 million USD in 2019 but then decreased marginally to 2,817 million USD in 2020. Afterward, there was a pronounced escalation to 4,205 million USD in 2021, maintaining an upward trend with 4,579 million USD recorded in 2022. This suggests substantial asset growth, particularly evident in the latter two years.
- Segment Asset Turnover Patterns
- The segment asset turnover ratio fluctuated throughout the period. It increased from 0.59 in 2018 to 0.65 in both 2019 and 2020, indicating improved efficiency in generating revenue from assets during these years. However, the ratio declined to 0.56 in 2021, coinciding with significant asset growth, which may have temporarily outpaced revenue gains. In 2022, turnover improved again to 0.67, surpassing previous years and indicating enhanced asset utilization efficiency.
- Overall Insights
- The data illustrates a robust growth in revenue and assets for the Specialty segment, especially post-2020. The temporary dip in revenue and asset turnover in 2020 and 2021 likely reflects transitional challenges or investment phases. The recovery and growth in 2022, alongside improved asset turnover, suggest that the segment has effectively leveraged its asset base to drive higher revenues. The increasing asset base paired with improving asset turnover towards the end of the period points to strengthened operational performance and efficiency.
Segment Capital Expenditures to Depreciation
United Rentals Inc., capital expenditures to depreciation by reportable segment
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| General rentals | |||||
| Specialty |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
- General rentals capital expenditures to depreciation ratio
- Over the examined five-year period, the ratio demonstrated notable fluctuations. Beginning at 1.4 in 2018, the ratio declined steadily to a low point of 0.59 in 2020. This suggests a significant reduction in capital expenditures relative to depreciation during that year. Following this dip, a strong recovery occurred with the ratio increasing sharply to 1.69 in 2021, slightly tapering to 1.62 in 2022. These latter values indicate increased reinvestment or asset renewal compared to the early years, particularly recovering beyond the 2018 level.
- Specialty capital expenditures to depreciation ratio
- The specialty segment exhibited a similar fluctuating pattern, albeit at generally lower levels initially. Starting at 1.19 in 2018, the ratio decreased year-over-year to 0.53 by 2020, reflecting a pronounced contraction in capital spending relative to depreciation akin to the general rentals segment. However, from 2021 onwards, there was a marked upward trend, reaching 1.29 and further growing to 1.82 in 2022. This steady increase not only reversed the prior downward trend but also surpassed the starting point, indicating enhanced investment activity surpassing depreciation charges in recent years.
- Comparative insights
- Both segments show an analogous trend of capital expenditure reductions relative to depreciation up to 2020, followed by recovery and subsequent growth through 2022. The year 2020 stands out as an inflection point for reduced capital spending or slower asset renewal across both segments. Post-2020, specialty segment capital expenditures grew more aggressively relative to depreciation than general rentals, ultimately reaching a higher ratio in 2022. This may suggest shifting strategic priorities or differing replacement cycles, with specialty assets receiving proportionally greater investment emphasis in the most recent years.
Segment Capital Expenditures to Depreciation: General rentals
United Rentals Inc.; General rentals; segment capital expenditures to depreciation calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | |||||
| Depreciation and amortization expense | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization expense
= ÷ =
- Capital expenditures
- The capital expenditures exhibit considerable fluctuations over the observed period. Starting at $1,980 million in 2018, the amount slightly decreases to $1,967 million in 2019. A substantial decline is noted in 2020 with expenditures dropping to $969 million. However, this is followed by a marked recovery and growth in 2021 and 2022, reaching $2,719 million and $2,868 million respectively, indicating a significant increase in investment activities towards the end of the period.
- Depreciation and amortization expense
- Depreciation and amortization expenses show a generally stable trend with minor variations. The expense rises from $1,410 million in 2018 to a peak of $1,681 million in 2019, then slightly decreases to $1,633 million in 2020. The levels remain relatively consistent in 2021 at $1,611 million, followed by a moderate increase to $1,765 million in 2022. This consistency suggests steady capital asset depreciation amid changing capital expenditure levels.
- Segment capital expenditures to depreciation ratio
- The ratio of capital expenditures to depreciation fluctuates noticeably, reflecting shifts in investment relative to depreciation. In 2018, the ratio stands at 1.4, declining to 1.17 in 2019. A significant drop occurs in 2020 to 0.59, indicating capital spending was less than depreciation, which may imply reduced asset investments or asset base contraction. The ratio sharply rises again in 2021 to 1.69 and slightly decreases to 1.62 in 2022, signaling strong investment activity increasing the asset base relative to depreciation expenses.
Segment Capital Expenditures to Depreciation: Specialty
United Rentals Inc.; Specialty; segment capital expenditures to depreciation calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | |||||
| Depreciation and amortization expense | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization expense
= ÷ =
The analysis of the specialty segment data from 2018 to 2022 reveals notable trends in capital expenditures, depreciation and amortization expense, and their relationship expressed as a ratio.
- Capital Expenditures
- Capital expenditures exhibited a fluctuating pattern over the five-year period. Initially, there was an upward movement from $311 million in 2018 to $383 million in 2019. This was followed by a significant decline in 2020 to $189 million, likely influenced by situational factors impacting investment decisions during that year. Subsequently, the expenditures rose substantially, reaching $479 million in 2021 and sharply increasing to $822 million in 2022, reflecting an aggressive investment phase or expansion activity in the segment.
- Depreciation and Amortization Expense
- This expense showed a consistent, gradual increase over the years, starting at $261 million in 2018 and rising steadily to $452 million by 2022. The relatively smooth upward trend suggests ongoing asset usage and accumulation of depreciable assets within the segment. The increment each year appears moderate without abrupt fluctuations, indicating stable asset base utilization.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio of capital expenditures to depreciation provides insight into investment relative to asset consumption. It started above 1.0 in 2018 at 1.19, indicating investment exceeding asset wear. The ratio slightly decreased to 1.07 in 2019 and then sharply dropped to 0.53 in 2020, reflecting significantly lower investment relative to depreciation expense for that year. This ratio rebounded strongly to 1.29 in 2021 and reached its peak at 1.82 in 2022, underscoring a period of heightened capital expenditure far outpacing the depreciation expense. The rising ratio in the latter years signals renewed or expanded investment activities likely aimed at asset growth or replacement.
Overall, the specialty segment portrays a cyclical investment pattern with a pronounced dip in capital expenditures during 2020, followed by a strong recovery and acceleration through 2022. The consistent increase in depreciation expenses alongside rising capital investment towards the end of the period indicates strategic asset base growth and potential enhancement of operational capacity within the segment.
Revenue
United Rentals Inc., revenue by reportable segment
US$ in millions
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| General rentals | |||||
| Specialty | |||||
| Total |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
- General Rentals Revenue Trend
- General rentals revenue exhibited a generally positive trend over the five-year period. Starting at $6,550 million in 2018, the revenue increased to $7,436 million in 2019, representing a notable rise. However, in 2020, there was a decline to $6,699 million, which may reflect external challenges impacting the segment. Subsequently, the revenue recovered, reaching $7,351 million in 2021 and further increasing to $8,584 million in 2022, marking the highest value in the observed period.
- Specialty Revenue Trend
- The specialty segment demonstrated consistent growth throughout the timeframe. Beginning at $1,497 million in 2018, revenue increased steadily to $1,915 million in 2019. Although there was a slight decrease to $1,831 million in 2020, the segment rebounded significantly with $2,365 million in 2021 and continued a strong upward trajectory to $3,058 million in 2022. This represents more than a doubling of revenue from 2018 to 2022, indicating robust expansion within this segment.
- Total Revenue Trend
- Total segment revenue followed a pattern reflective of its component parts. Revenue rose from $8,047 million in 2018 to $9,351 million in 2019, then experienced a decrease to $8,530 million in 2020. The total revenue rebounded to $9,716 million in 2021 and reached $11,642 million in 2022, illustrating strong overall growth across the period. The total increase between 2018 and 2022 was approximately 45%, driven by recovering revenues and significant specialty segment growth.
- Insights and Observations
- The data indicates that while the general rentals segment faced some volatility, particularly a downturn in 2020, it ultimately showed recovery and growth by 2022. The specialty segment, however, displayed more consistent positive momentum, suggesting an increasing strategic focus or market demand in this area. The overall growth in total revenues underscores an expanding business scope or improved market conditions post-2020. The slight dip in 2020 across all segments likely corresponds to market disruptions commonly experienced in that year.
Depreciation and amortization expense
United Rentals Inc., depreciation and amortization expense by reportable segment
US$ in millions
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| General rentals | |||||
| Specialty | |||||
| Total |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
The depreciation and amortization expense data for the annual reportable segments of the company illustrate several notable trends over the five-year period ending December 31, 2022.
- General Rentals Segment
- The depreciation and amortization expense in the General Rentals segment demonstrated an overall upward trend. It started at 1,410 million USD in 2018, increased to a peak of 1,681 million USD in 2019, then slightly declined to 1,633 million USD in 2020 and further to 1,611 million USD in 2021. However, in 2022, the expense rose again to 1,765 million USD, surpassing all previous years. This pattern suggests a generally increasing asset base or higher capital expenditures with some volatility between 2019 and 2021.
- Specialty Segment
- The Specialty segment showed a consistent and marked increase in depreciation and amortization expenses each year. Starting at 261 million USD in 2018, the expense steadily grew to 357 million USD in 2019, remained almost stable at 355 million USD in 2020, then further increased to 372 million USD in 2021, and reached 452 million USD in 2022. This continuous increase indicates ongoing investments in assets within the Specialty segment, reflecting expansion or asset upgrades.
- Total Depreciation and Amortization Expense
- The combined total expense for both segments rose from 1,671 million USD in 2018 to 2,217 million USD in 2022. Although there was a slight decline in 2020 and 2021 compared to 2019, the total expense demonstrated an overall increasing trend. The total expense growth is driven by increases in the Specialty segment and a rebound in the General Rentals segment in 2022. This suggests that the company's overall asset base has expanded, and/or accounting for higher capitalized costs over time.
In summary, the data indicate a general increase in depreciation and amortization expenses, reflective of an expanding asset base in both reportable segments. The Specialty segment exhibits a more consistent and steady growth pattern, while the General Rentals segment shows some fluctuations but ends with the highest expense in the analyzed period. These trends imply strategic asset investments and potential growth initiatives across both segments.
Equipment rentals gross profit
United Rentals Inc., equipment rentals gross profit by reportable segment
US$ in millions
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| General rentals | |||||
| Specialty | |||||
| Total |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
- General Rentals Gross Profit
- The gross profit for the general rentals segment displayed a fluctuating trend over the period observed. Starting at $2,293 million in 2018, it increased moderately to $2,407 million in 2019. The year 2020 saw a notable decline to $1,954 million, likely reflecting external challenges. Subsequently, the metric rebounded to $2,269 million in 2021, and further increased to $2,905 million in 2022, representing the highest value in the period.
- Specialty Rentals Gross Profit
- The specialty rentals segment demonstrated consistent growth throughout the period. Beginning at $670 million in 2018, the gross profit increased steadily, reaching $800 million in 2019. After a slight downturn to $765 million in 2020, the segment recovered sharply, attaining $998 million in 2021 and progressing to $1,340 million in 2022. This segment showed significant expansion, especially in the latter years.
- Total Equipment Rentals Gross Profit
- Total gross profit from equipment rentals mirrored the overall movements of both segments combined. After increasing from $2,963 million in 2018 to $3,207 million in 2019, total gross profit declined to $2,719 million in 2020. A recovery phase followed, with totals rising to $3,267 million in 2021 and then surging to $4,245 million in 2022, marking a substantial upward trend. The growth from 2021 to 2022 was particularly pronounced.
- Summary
- The general rentals segment experienced variability with a dip in 2020 but recovered strongly by 2022. The specialty segment showed overall robust growth, contributing increasingly to total gross profit. The total equipment rentals gross profit data highlights resilience and recovery post-2020, culminating in significant growth by 2022. The combined data suggests an expanding market or improved operational efficiency in both segments, with specialty rentals playing an increasingly important role in total profitability.
Capital expenditures
United Rentals Inc., capital expenditures by reportable segment
US$ in millions
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| General rentals | |||||
| Specialty | |||||
| Total |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
- General Rentals Capital Expenditures
- The capital expenditures for the General Rentals segment showed relative stability between 2018 and 2019, with amounts around US$1,980 million and US$1,967 million, respectively. However, a significant decline occurred in 2020, with expenditures dropping to US$969 million, representing a decrease of over 50% compared to the previous year. This reduction was followed by a substantial recovery and growth in 2021 and 2022, reaching US$2,719 million and US$2,868 million, respectively, exceeding the pre-2020 levels.
- Specialty Capital Expenditures
- Capital expenditures in the Specialty segment exhibited a similar pattern of fluctuation. The values increased from US$311 million in 2018 to US$383 million in 2019, indicating moderate growth. Thereafter, a sharp decline occurred in 2020, with expenditures reducing to US$189 million. Following this low point, expenditures significantly rebounded to US$479 million in 2021 and further to US$822 million in 2022, marking a robust recovery and a strong upward trend.
- Total Capital Expenditures
- The total capital expenditures, combining both segments, mirrored the individual trends, with an increase from US$2,291 million in 2018 to US$2,350 million in 2019. In 2020, total expenditures dropped markedly to US$1,158 million, reflecting the downturn seen in both segments. The subsequent years showed a vigorous rebound, with total expenditures increasing to US$3,198 million in 2021 and reaching a peak of US$3,690 million in 2022, the highest in the five-year period.
- Overall Trends and Insights
- Across the observed period, a notable pattern is the sharp decline in capital expenditures in 2020, likely linked to broader economic challenges or operational shifts. Both General Rentals and Specialty segments experienced this downturn. Following 2020, there was a pronounced recovery and expansion phase, with expenditures in 2021 and 2022 surpassing previous highs. This suggests a strategic emphasis on investment and growth in recent years, particularly with the Specialty segment exhibiting a strong growth trajectory post-2020.
Total assets
United Rentals Inc., total assets by reportable segment
US$ in millions
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| General rentals | |||||
| Specialty | |||||
| Total |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
- General rentals segment total assets
- The total assets in this segment demonstrated a fluctuating yet overall upward trend over the examined period. Beginning at 15,597 million US dollars at the end of 2018, assets increased modestly to 16,036 million by the end of 2019. A decline was observed in 2020, with assets decreasing to 15,051 million. This was followed by a recovery in 2021, rising to 16,087 million, and a significant increase in 2022, reaching 19,604 million. The general rentals segment ended the period with the highest asset value observed.
- Specialty segment total assets
- The specialty segment's total assets showed consistent growth across the majority of the periods analyzed. From 2,536 million US dollars at the close of 2018, assets increased to 2,934 million in 2019. A slight decrease occurred in 2020, dropping to 2,817 million. However, this was followed by substantial growth in 2021, with assets climbing to 4,205 million, and a further increase in 2022, reaching 4,579 million. The increase in assets in 2021 marked a significant expansion relative to prior years.
- Total reported segment assets
- Total assets exhibited a general upward trajectory over the five-year span. The total assets increased from 18,133 million US dollars in 2018 to 18,970 million in 2019, followed by a decline to 17,868 million in 2020. Recovery and strong growth occurred in subsequent years, with totals rising to 20,292 million in 2021 and reaching 24,183 million in 2022. The overall trend indicates increasing asset investment and accumulation within the segments, with the largest growth observed during the final two years.
- Insight on segment contributions
- The general rentals segment consistently represented the majority share of total assets throughout the period. Despite minor fluctuations, it maintained a dominant position in asset allocation. Specialty segment assets, while smaller in scale, displayed marked growth particularly from 2020 onwards, contributing increasingly to the total assets. This suggests strategic emphasis and resource allocation toward the specialty segment in recent years.