United Rentals, Inc. stock research
FY2023 Q1
United Rentals (URI) Gross Margin — Quarter Ended Mar 31, 2023
Gross profit is revenue minus cost of revenue, and gross margin is that profit expressed as a share of revenue. In the current quarter, revenue was unchanged from the immediately preceding period but cost of revenue rose, causing gross profit and gross margin to decline; compared with the same quarter one year earlier, revenue increased but cost of revenue grew faster, resulting in a slightly lower gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Gross profit is revenue minus cost of revenue, and gross margin is that profit expressed as a share of revenue. In the current quarter, revenue was unchanged from the immediately preceding period but cost of revenue rose, causing gross profit and gross margin to decline; compared with the same quarter one year earlier, revenue increased but cost of revenue grew faster, resulting in a slightly lower gross margin.
- The strongest observable margin driver is the increase in cost of revenue, which grew at a faster pace than revenue both sequentially and year-over-year, directly compressing gross margin.
- Compared with the immediately preceding period, current gross margin weakened as revenue stayed flat while cost of revenue rose. Compared with the same quarter one year earlier, gross margin also weakened, as revenue growth was outpaced by cost of revenue growth.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
37.8%
Gross profit
$1.2B
Revenue
$3.3B
Cost of revenue
$2.0B
Quarter-over-quarter change
n/a
Year-over-year change
-1.5 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $3.3B | $1.2B | $2.0B | 37.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
-1.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the increase in cost of revenue, which grew at a faster pace than revenue both sequentially and year-over-year, directly compressing gross margin.
Compared with the immediately preceding period, current gross margin weakened as revenue stayed flat while cost of revenue rose. Compared with the same quarter one year earlier, gross margin also weakened, as revenue growth was outpaced by cost of revenue growth.
Monitor the integration of the Ahern Rentals acquisition, as noted in the filing, given its potential impact on cost structure and margins.