Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
United Rentals's 5-Year RORE % for the quarter that ended in Mar. 2024 was 19.61%.
The industry rank for United Rentals's 5-Year RORE % or its related term are showing as below:
URI's 5-Year RORE % is ranked better than 68.43% of 852
companies
in the Business Services industry
Industry Median: 6.39
vs URI: 19.61
United Rentals 5-Year RORE % Historical Data
The historical data trend for United Rentals's 5-Year RORE % 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 5-Year RORE %
For the Rental & Leasing Services subindustry, United Rentals's 5-Year RORE %, along with its competitors' market caps and 5-Year RORE % 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 5-Year RORE % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, United Rentals's 5-Year RORE % distribution charts can be found below:
* The bar in red indicates where United Rentals's 5-Year RORE % falls into.
United Rentals 5-Year RORE % Calculation
United Rentals's 5-Year RORE % for the quarter that ended in Mar. 2024 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 5-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2024 and 5-year before.
United Rentals (NYSE:URI) 5-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 5-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
United Rentals 5-Year RORE % Related Terms
Thank you for viewing the detailed overview of United Rentals's 5-Year RORE % 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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