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URI (United Rentals) ROA % : 10.11% (As of Sep. 2024)


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What is United Rentals ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. United Rentals's annualized Net Income for the quarter that ended in Sep. 2024 was $2,832 Mil. United Rentals's average Total Assets over the quarter that ended in Sep. 2024 was $28,013 Mil. Therefore, United Rentals's annualized ROA % for the quarter that ended in Sep. 2024 was 10.11%.

The historical rank and industry rank for United Rentals's ROA % or its related term are showing as below:

URI' s ROA % Range Over the Past 10 Years
Min: 4.62   Med: 6.47   Max: 9.96
Current: 9.56

During the past 13 years, United Rentals's highest ROA % was 9.96%. The lowest was 4.62%. And the median was 6.47%.

URI's ROA % is ranked better than
80.78% of 1082 companies
in the Business Services industry
Industry Median: 3.45 vs URI: 9.56

United Rentals ROA % Historical Data

The historical data trend for United Rentals's ROA % 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.

* Premium members only.

United Rentals ROA % Chart

United Rentals Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.33 4.83 7.26 9.47 9.74

United Rentals Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROA % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.95 10.56 8.30 9.38 10.11

Competitive Comparison of United Rentals's ROA %

For the Rental & Leasing Services subindustry, United Rentals's ROA %, along with its competitors' market caps and ROA % 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 ROA % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, United Rentals's ROA % distribution charts can be found below:

* The bar in red indicates where United Rentals's ROA % falls into.



United Rentals ROA % Calculation

United Rentals's annualized ROA % for the fiscal year that ended in Dec. 2023 is calculated as:

ROA %=Net Income (A: Dec. 2023 )/( (Total Assets (A: Dec. 2022 )+Total Assets (A: Dec. 2023 ))/ count )
=2424/( (24183+25589)/ 2 )
=2424/24886
=9.74 %

United Rentals's annualized ROA % for the quarter that ended in Sep. 2024 is calculated as:

ROA %=Net Income (Q: Sep. 2024 )/( (Total Assets (Q: Jun. 2024 )+Total Assets (Q: Sep. 2024 ))/ count )
=2832/( (27613+28412)/ 2 )
=2832/28012.5
=10.11 %

* 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 ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Sep. 2024) net income data. ROA % is displayed in the 30-year financial page.


United Rentals  (NYSE:URI) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Sep. 2024 )
=Net Income/Total Assets
=2832/28012.5
=(Net Income / Revenue)*(Revenue / Total Assets)
=(2832 / 15968)*(15968 / 28012.5)
=Net Margin %*Asset Turnover
=17.74 %*0.57
=10.11 %

Note: The Net Income data used here is four times the quarterly (Sep. 2024) net income data. The Revenue data used here is four times the quarterly (Sep. 2024) revenue data.

* 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.


Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % 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 ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


United Rentals ROA % Related Terms

Thank you for viewing the detailed overview of United Rentals's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.


United Rentals Business Description

Traded in Other Exchanges
Address
100 First Stamford Place, Suite 700, Stamford, CT, USA, 06902
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.
Executives
Joli L. Gross officer: SVP, General Counsel TWO AMERICAN LANE, GREENWICH CT 06831
Anthony S. Leopold officer: SVP C/O UNITED RENTALS, INC., 100 FIRST STAMFORD PLACE, SUITE 700, STAMFORD CT 06902
Michael D Durand officer: EVP, Chief Operating Officer C/O UNITED RENTALS, INC., 100 FIRST STAMFORD PLACE, SUITE 700, STAMFORD CT 06902
Matthew John Flannery officer: Sr. Vice President- Operations C/O UNITED RENTALS, INC, 100 FIRST STAMFORD PL, STAMFORD CT 06902
Craig Adam Pintoff officer: Sr. V.P,, Gen. Counsel & H.R. C/O UNITED RENTALS, INC, 100 FIRST STAMFORD PL, STE 700, STAMFORD CT 06902
William E. Grace officer: VP, Interim CFO C/O UNITED RENTALS, INC., 100 FIRST STAMFORD PLACE, SUITE 700, STAMFORD CT 06902
Terri L. Kelly director C/O UNITED RENTALS, INC., 100 FIRST STAMFORD PLACE, SUITE 700, STAMFORD CT 06902
Dale A Asplund officer: Senior V.P.-Business Services C/O BRIGHTVIEW HOLDINGS, INC., 980 JOLLY ROAD, SUITE 300, BLUE BELL PA 19422
Andrew B. Limoges officer: VP, Controller C/O UNITED RENTALS, INC., 100 FIRST STAMFORD PLACE, SUITE 700, STAMFORD CT 06902
Jose B Alvarez director STOP & SHOP, 1385 HANCOCK STREET, QUINCY MA 02169
Francisco J Lopez-balboa director 3280 PEACHTREE ROAD, N.W., ATLANTA GA 30305
Jessica Graziano officer: Vice President, Controller C/O UNITED RENTALS, INC, 100 FIRST STAMFORD PL, STAMFORD CT 06902
Shiv Singh director C/O UNITED RENTALS, INC., 100 FIRST STAMFORD PLACE, SUITE 700, STAMFORD CT 06902
De Shon Larry D director 6 SYLVAN WAY, PARSIPPANY NJ 07054
Filippo Passerini director C/O UNITED RENTALS, INC, 100 FIRST STAMFORD PL, STAMFORD CT 06902