URI Financial Analysis
Revenue Analysis:
Total and Operating Revenue: URI shows a trend of increasing revenue over recent quarters. From Q1 2023 with $3,285,000,000 to Q1 2024 where they reported $3,485,000,000, indicating a robust growth in operational activities.
Gross Profit Margin: URI’s Gross Profit has also seen an upward trend from $1,241,000,000 in Q1 2023 to $1,346,000,000 in Q1 2024. This reflects effective management in balancing revenue growth with cost controls.
Cost Management:
Cost of Revenue: Costs of Revenue increased from $2,044,000,000 in Q1 2023 to $2,139,000,000 in the same period of 2024. This indicates a proportional increase alongside revenue.
Operating Expense: Operating Expenses are relatively consistent, with a minor increase noted from $500,000,000 in Q1 2023 to $493,000,000 in Q1 2024.
Total Expenses: Total expenses saw a similar upward trend, correlating with the overall expansion in operational scope and revenue.
Profitability Analysis:
EBITDA: Earnings before interest, taxes, depreciation, and amortization (EBITDA) for URI has shown impressive growth from $1,437,000,000 in Q1 2023 to $1,541,000,000 in Q1 2024.
Operating Income: Operating Income has increased from $741,000,000 in Q1 2023 to $853,000,000 in Q1 2024, indicating efficient operational management and profitability.
Pretax Income: Continuing the trend, Pretax Income rose significantly from $594,000,000 in Q1 2023 to $695,000,000 in Q1 2024.
Net Income: Net Income presents strong positive growth from $451,000,000 in Q1 2023 to $542,000,000 in Q1 2024.
Cash Flow Indicators:
Reconciled Depreciation: Depreciation values show stability which indicates substantial and sustained capital expenditure in fixed assets, i.e., from $693,000,000 in Q1 2023 to $686,000,000 in Q1 2024.
Interest Expense: Interest Expense remained static at $160,000,000 from Q4 2023 to Q1 2024, reflecting consistent financing costs.
Taxation:
Tax Rate: The Tax rate has slightly varied, but was around 22% as of the end of Q1 2024.
Tax Provision: Tax provisions have increased consistent with pre-tax income growth, from $143,000,000 in Q1 2023 to $153,000,000 in Q1 2024.
Tax Effect of Unusual Items: There was a noticeable tax effect due to unusual items, notably $220,000 in Q1 2024.
Shareholder Metrics:
Diluted and Basic EPS: Earnings per share (EPS) have shown healthy growth; Diluted EPS increased from $6.47 in Q1 2023 to $8.04 in Q1 2024.
Average Shares: Average shares have slightly decreased, impacting EPS positively.
Net Income Available to Common Stockholders: Essentially mirrors the net income, displaying a rise to $542,000,000 in Q1 2024 from $451,000,000 in Q1 2023.
Conclusion:
URI has demonstrated solid revenue growth, efficient cost management, strong profitability, stable cash flows, and maintained shareholder returns. Continued investment in operational efficiency and market expansion may further increase shareholder value.