United Rentals, Inc. stock research
FY2023 Q3
United Rentals (URI) Gross Margin — Quarter Ended Sep 30, 2023
In the current quarter, revenue was lower than gross profit, resulting in a gross margin that exceeded one hundred percent. Cost of revenue was higher than revenue, and gross profit remained positive.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
In the current quarter, revenue was lower than gross profit, resulting in a gross margin that exceeded one hundred percent. Cost of revenue was higher than revenue, and gross profit remained positive.
- The strongest observable margin driver is the gross profit exceeding revenue, which directly causes the gross margin to be above one hundred percent. This relationship is driven by the absolute values of the metrics themselves.
- Compared to the preceding quarter, gross margin improved as it turned from negative to positive. Compared to the same quarter one year earlier, gross margin weakened as it decreased from a higher level.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
188.2%
Gross profit
$1.6B
Revenue
$842.0M
Cost of revenue
$2.2B
Quarter-over-quarter change
+275.6 pts
Year-over-year change
-48.1 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% |
| Jun 30, 2023 | -$1.6B | $1.4B | $2.1B | -87.4% |
| Sep 30, 2023 | $842.0M | $1.6B | $2.2B | 188.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+275.6 pts
Year-over-year change
Sep 30, 2022
-48.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the gross profit exceeding revenue, which directly causes the gross margin to be above one hundred percent. This relationship is driven by the absolute values of the metrics themselves.
Compared to the preceding quarter, gross margin improved as it turned from negative to positive. Compared to the same quarter one year earlier, gross margin weakened as it decreased from a higher level.
Monitor the relationship between cost of revenue and revenue, as cost of revenue exceeded revenue in the current quarter.