Cash Flow from Investing covers the cash a company gains or spends from investment activities in financial market and operating subsidiaries. It also includes the cash the company used for property, plant and equipment (PPE).
For the
three
months ended in Mar. 2024, United RentalsspentUSD569 Mil on purchasing property, plant, equipment.
It gainedUSD396 Mil from selling property, plant, and equipment.
It spentUSD1,118 Mil on purchasing business.
It gainedUSD0 Mil from selling business.
It spentUSD2 Mil on purchasing investments.
It gainedUSD0 Mil from selling investments.
It paidUSD0Mil for net Intangibles purchase and sale.
And it receivedUSD13 Mil from other investing activities.
In all, United RentalsspentUSD1,280 Mil on investment activities in financial market and operating subsidiaries for the
three
months ended in Mar. 2024.
United Rentals Cash Flow from Investing Historical Data
The historical data trend for United Rentals's Cash Flow from Investing can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
United Rentals Cash Flow from Investing Calculation
Cash Flow from Investing covers the cash a company gains or spends from investment activities in financial market and operating subsidiaries. It also includes the cash the company used for property, plant and equipment (PPE).
If a company spends cash on property, plant and equipment (PPE), this will reduce their cash position. This is called Capital Expenditures (CPEX).
Likewise, if a company buys another company for cash, this will reduce their cash position.
United Rentals's Cash Flow from Investing for the fiscal year that ended in Dec. 2023 is calculated as:
Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was USD-3,496 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
United Rentals (NYSE:URI) Cash Flow from Investing Explanation
United Rentals's purchase of property, plant, equipment for the
three
months ended in Mar. 2024 was USD-569 Mil. It means United Rentals spent USD569 Mil on purchasing property, plant, equipment.
In the capital spending for property, plant and equipment (PPE), some part of spending may be from the expansion of business. The business needs more property, plant and equipment (PPE) as it grows. Another part may be from replacement of the property, plant and equipment (PPE) of existing business. For some companies, the cash spent on replacing of the property, plant and equipment (PPE) of the existing business will be close to the depreciation of property, plant and equipment (PPE) reported in the income statement.
In Warren Buffett's definition of Owner's Earnings, he deducts the estimate of the cost of replacing the property, plant and equipment (PPE) of the existing business from cash flow from operations. The cash spent on the new property, plant, and equipment is not deducted. The reason is because these are not costs of the existing business. In his 1986 letter to shareholders, Warren Buffett wrote this about owner earnings:
"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume....Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."
United Rentals's sale of property, plant, equipment for the
three
months ended in Mar. 2024 was USD396 Mil. It means United Rentals gained USD396 Mil from selling property, plant, and equipment.
3.Purchase Of Business:
Purchase of business indicates the amount used to purchase business.
United Rentals's purchase of business for the
three
months ended in Mar. 2024 was USD-1,118 Mil. It means United Rentals spent USD1,118 Mil on purchasing business.
4. Sale Of Business:
Sale of business indicates the amount gained from selling business.
United Rentals's sale of business for the
three
months ended in Mar. 2024 was USD0 Mil. It means United Rentals gained USD0 Mil from selling business.
5. Purchase Of Investment:
Purchase of Investments represents cash outflow on the purchase of investments in securities.
United Rentals's purchase of investment for the
three
months ended in Mar. 2024 was USD-2 Mil. It means United Rentals spent {stock_data.stock.currency_symbol}}2 Mil on purchasing investments.
6. Sale Of Investment:
Sale of Investments represents cash inflow on the sale of investments in securities.
United Rentals's sale of investment for the
three
months ended in Mar. 2024 was USD0 Mil. It means United Rentals gained USD0 Mil from selling investments.
7. Net Intangibles Purchase And Sale:
Net Intangibles purchase and sale means the net cash inflow received by a company that comes from the purchase and sale of intangibles. It equals the cash received from sale of intangibles minus the cash spent on purchasing intangibles.
United Rentals's net Intangibles purchase and sale for the
three
months ended in Mar. 2024 was USD0 Mil.
It means United Rentals paid USD0 Mil for net Intangibles purchase and sale.
8. Cash From Discontinued Investing Activities:
Cash from discontinued investing activities means the cash received by a company that comes from the discontinued investing activities.
United Rentals's cash from discontinued investing activities for the
three
months ended in Mar. 2024 was 0 Mil.
It means United Rentals paid USD0 Mil for discontinued investing activities.
9. Cash From Other Investing Activities:
Cash from other investing activities means the cash received by a company that comes from other investing activities.
United Rentals's cash from other investing activities for the
three
months ended in Mar. 2024 was USD13 Mil.
It means United Rentals received USD13 Mil from other investing activities.
United Rentals Cash Flow from Investing Related Terms
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United Rentals (United Rentals) Business Description
United Rentals is the world's largest equipment rental company. It principally operates in the United States and Canada, where it commands approximately 17% share in a highly fragmented market. It serves three end markets: general industrial, commercial construction, and residential construction. Like its peers, United Rentals historically has provided its customers with equipment that was intermittently used, such as aerial equipment and portable generators. As the company has grown organically and through hundreds of acquisitions since it went public in 1997, its catalog (fleet size of $21 billion) now includes a range of specialty equipment and other items that can be rented for indefinitely long periods.
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