United Rentals Inc (URI)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	457,000	363,000	106,000	144,000	202,000
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	3,323,000	3,637,000	2,445,000	2,603,000	1,890,000
Cash ratio		0.14	0.10	0.04	0.06	0.11

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($457,000K + $—K) ÷ $3,323,000K
= 0.14

The cash ratio of United Rentals Inc has shown a fluctuating trend over the years, based on the provided data.

As of December 31, 2020, the cash ratio was 0.11, indicating that the company had $0.11 of cash and cash equivalents for every $1 of current liabilities. This ratio decreased to 0.06 by December 31, 2021, suggesting a decrease in the company's ability to cover its short-term obligations with its cash holdings.

By December 31, 2022, the cash ratio further declined to 0.04, signaling a potential liquidity challenge for the company in meeting its immediate financial commitments. However, there was an improvement in the cash ratio by December 31, 2023, reaching 0.10, which may indicate a temporary recovery in liquidity.

Finally, as of December 31, 2024, the cash ratio increased to 0.14, showing a strengthening in the company's ability to meet its short-term obligations with its available cash resources.

Overall, the fluctuations in United Rentals Inc's cash ratio indicate varying levels of liquidity over the years, with the company experiencing both challenges and improvements in its ability to cover its short-term liabilities with cash on hand.