United Rentals Inc (URI)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	363,000	106,000	144,000	202,000	52,000
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	3,637,000	2,445,000	2,603,000	1,890,000	2,198,000
Cash ratio		0.10	0.04	0.06	0.11	0.02

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($363,000K + $—K) ÷ $3,637,000K
= 0.10

The cash ratio of United Rentals, Inc. has exhibited fluctuations over the past five years. The ratio, which measures the company's ability to cover its short-term liabilities with its cash and cash equivalents, stood at 0.14 as of December 31, 2023, down from 0.20 in the previous year. This decline suggests a reduced capacity to meet short-term obligations solely from its cash reserves. However, it is worth noting that the cash ratio was higher in 2022 compared to 2021, indicating an improvement in liquidity during that period. Furthermore, the ratio was relatively high in 2020 at 0.31, reflecting a stronger ability to settle short-term debts using available cash. The lowest cash ratio was observed in 2019 at 0.09, highlighting a potential liquidity challenge at that time. Overall, ongoing monitoring and assessment of the company's management of cash and cash equivalents are essential to ensure its ability to meet short-term obligations.