The historical rank and industry rank for United Rentals's Gross Margin % or its related term are showing as below:
URI'
s Gross Margin % Range Over the Past 10 Years
Min: 37.32 Med: 41.7 Max: 42.91
Current: 40.55
During the past 13 years, the highestGross Margin % of United Rentals was 42.91%. The lowest was 37.32%. And the median was 41.70%.
URI's Gross Margin % is ranked better than 58.62% of 998
companies
in the Business Services industry
Industry Median: 34.285
vs URI: 40.55
United Rentals had a gross margin of 41.28% for the quarter that ended in Sep. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for United Rentals was 0.50% per year.
United Rentals Gross Margin % Historical Data
The historical data trend for United Rentals's Gross Margin % 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 Gross Margin %
For the Rental & Leasing Services subindustry, United Rentals's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, United Rentals's Gross Margin % distribution charts can be found below:
* The bar in red indicates where United Rentals's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
United Rentals (NYSE:URI) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
United Rentals had a gross margin of 41.28% for the quarter that ended in Sep. 2024 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
United Rentals Gross Margin % Related Terms
Thank you for viewing the detailed overview of United Rentals's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
United Rentals is the world's largest equipment rental company. It principally operates in the United States and Canada, where it commands approximately 15% 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 indefinite periods.
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