United Rentals (LTS:0LIY) Inventory Turnover : 10.36 (As of Mar. 2024)

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What is United Rentals Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. United Rentals's Cost of Goods Sold for the three months ended in Mar. 2024 was $2,139 Mil. United Rentals's Average Total Inventories for the quarter that ended in Mar. 2024 was $207 Mil. United Rentals's Inventory Turnover for the quarter that ended in Mar. 2024 was 10.36.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. United Rentals's Days Inventory for the three months ended in Mar. 2024 was 8.81.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. United Rentals's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.06.

United Rentals Inventory Turnover Historical Data

The historical data trend for United Rentals's Inventory Turnover 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.

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United Rentals Inventory Turnover Chart

United Rentals Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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49.62

43.65

40.57

33.57

38.99

United Rentals Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Inventory Turnover	Get a 7-Day Free Trial															9.00	9.86	10.61	10.67	10.36

United Rentals Inventory Turnover Calculation

United Rentals's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	8519	/ (	(232	+	205)	/	2 )
=	8519	/	218.5
=	38.99

United Rentals's Inventory Turnover for the quarter that ended in Mar. 2024 is calculated as

	Inventory Turnover (Q: Mar. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2024 )	/ (	(Total Inventories (Q: Dec. 2023 )	+	Total Inventories (Q: Mar. 2024 ))	/	count )
=	2139	/ (	(205	+	208)	/	2 )
=	2139	/	206.5
=	10.36

United Rentals (LTS:0LIY) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

United Rentals's Days Inventory for the three months ended in Mar. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2024 )	/	Cost of Goods Sold (Q: Mar. 2024 )	*	Days in Period
	=	206.5	/	2139	*	365 / 4
	=	8.81

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

United Rentals's Inventory to Revenue for the quarter that ended in Mar. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	206.5	/	3485
	=	0.06

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

United Rentals Inventory Turnover Related Terms

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United Rentals (LTS:0LIY) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » United Rentals Inc (LTS:0LIY) » Definitions » Inventory Turnover

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URI:USA UR3:Germany U1RI34:Brazil

Address

100 First Stamford Place, Suite 700, Stamford, CT, USA, 06902

Website

https://www.unitedrentals.com

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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