United Rentals Inc (URI)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 0.98 | 0.81 | 1.11 | 0.83 | 1.07 |
| Quick ratio | 0.85 | 0.71 | 0.86 | 0.70 | 0.80 |
| Cash ratio | 0.14 | 0.10 | 0.04 | 0.06 | 0.11 |
The current ratio of United Rentals Inc, a measure of its short-term liquidity, decreased from 1.07 in December 2020 to 0.83 in December 2021, indicating that the company may have had difficulties meeting its short-term obligations. However, there was an improvement in the current ratio to 1.11 in December 2022, suggesting better short-term liquidity. Nonetheless, the ratio dipped again to 0.81 in December 2023 before slightly recovering to 0.98 in December 2024.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also declined from 0.80 in December 2020 to 0.70 in December 2021. There was an improvement to 0.86 in December 2022 followed by decreases to 0.71 in December 2023 and a slight recovery to 0.85 in December 2024.
The cash ratio of United Rentals Inc, representing its ability to cover immediate liabilities with cash and cash equivalents, declined from 0.11 in December 2020 to 0.06 in December 2021. The ratio further decreased to 0.04 in December 2022 before improving to 0.10 in December 2023 and 0.14 in December 2024.
Overall, United Rentals Inc experienced fluctuations in its liquidity ratios over the years, indicating varying levels of short-term liquidity and ability to meet immediate obligations. Investors and stakeholders may want to closely monitor these ratios to assess the company's financial health and ability to manage liquidity risks.
See also:
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 34.31 | 26.80 | 13.02 | 22.41 | 32.99 |
The cash conversion cycle of United Rentals Inc has shown fluctuating trends over the years.
In December 2020, the cash conversion cycle was 32.99 days, indicating that it took the company approximately 33 days to convert its investments in inventory and other resources into cash. By December 2021, the cash conversion cycle dropped to 22.41 days, suggesting an improvement in the company's efficiency in managing its working capital.
The trend continued in December 2022, with the cash conversion cycle further decreasing to 13.02 days, reflecting a significant enhancement in the company's cash flow management. However, there was a slight increase in the cash conversion cycle to 26.80 days by December 2023, implying a temporary slowdown in the conversion of resources into cash.
By December 2024, the cash conversion cycle rose to 34.31 days, indicating that United Rentals Inc took longer to convert its investments into cash compared to the previous year. Overall, the company's cash conversion cycle has displayed variability, with periods of improvement followed by slight setbacks in efficiency.