Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. United Rentals's annualized net income for the quarter that ended in Mar. 2024 was $2,168 Mil. United Rentals's average shareholder tangible equity for the quarter that ended in Mar. 2024 was $1,056 Mil. Therefore, United Rentals's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2024 was 205.40%.
The historical rank and industry rank for United Rentals's Return-on-Tangible-Equity or its related term are showing as below:
URI'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 230.42 Med: 602.48 Max: 974.54
Current: 266.65
During the past 13 years, United Rentals's highest Return-on-Tangible-Equity was 974.54%. The lowest was 230.42%. And the median was 602.48%.
URI's Return-on-Tangible-Equity is ranked better than 88% of 1000
companies
in the Business Services industry
Industry Median: 12.235
vs URI: 266.65
United Rentals Return-on-Tangible-Equity Historical Data
The historical data trend for United Rentals's Return-on-Tangible-Equity 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-Equity
For the Rental & Leasing Services subindustry, United Rentals's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, United Rentals's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where United Rentals's Return-on-Tangible-Equity falls into.
United Rentals Return-on-Tangible-Equity Calculation
United Rentals's annualized Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
United Rentals (NYSE:URI) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
United Rentals Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of United Rentals's Return-on-Tangible-Equity 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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