Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. United Rentals's annualizedNet Income for the quarter that ended in Mar. 2024 was $2,168 Mil. United Rentals's average total tangible assets for the quarter that ended in Mar. 2024 was $19,054 Mil. Therefore, United Rentals's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2024 was 11.38%.
The historical rank and industry rank for United Rentals's Return-on-Tangible-Asset or its related term are showing as below:
URI'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 7.11 Med: 9.68 Max: 14.91
Current: 13.32
During the past 13 years, United Rentals's highest Return-on-Tangible-Asset was 14.91%. The lowest was 7.11%. And the median was 9.68%.
URI's Return-on-Tangible-Asset is ranked better than 84.58% of 1083
companies
in the Business Services industry
Industry Median: 4.2
vs URI: 13.32
United Rentals Return-on-Tangible-Asset Historical Data
The historical data trend for United Rentals's Return-on-Tangible-Asset 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.
Competitive Comparison of United Rentals's Return-on-Tangible-Asset
For the Rental & Leasing Services subindustry, United Rentals's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
United Rentals's Return-on-Tangible-Asset Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, United Rentals's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where United Rentals's Return-on-Tangible-Asset falls into.
United Rentals Return-on-Tangible-Asset Calculation
United Rentals's annualized Return-on-Tangible-Asset for the fiscal year that ended in Dec. 2023 is calculated as:
* 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2024) net income data.
United Rentals (NYSE:URI) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
United Rentals Return-on-Tangible-Asset Related Terms
Thank you for viewing the detailed overview of United Rentals's Return-on-Tangible-Asset provided by GuruFocus.com. Please click on the following links to see related term pages.
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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