United Rentals Inc (URI)
Cash ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 363,000 | 284,000 | 227,000 | 99,000 | 106,000 | 76,000 | 68,000 | 101,000 | 144,000 | 320,000 | 336,000 | 278,000 | 202,000 | 174,000 | 127,000 | 513,000 | 52,000 | 60,000 | 75,000 | 52,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 3,637,000 | 3,673,000 | 3,810,000 | 2,280,000 | 2,445,000 | 2,264,000 | 2,023,000 | 2,597,000 | 2,603,000 | 2,752,000 | 2,544,000 | 1,841,000 | 1,890,000 | 1,916,000 | 1,921,000 | 1,996,000 | 2,198,000 | 2,643,000 | 2,535,000 | 2,238,000 |
| Cash ratio | 0.10 | 0.08 | 0.06 | 0.04 | 0.04 | 0.03 | 0.03 | 0.04 | 0.06 | 0.12 | 0.13 | 0.15 | 0.11 | 0.09 | 0.07 | 0.26 | 0.02 | 0.02 | 0.03 | 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 fluctuated over the past eight quarters. The cash ratio measures a company's ability to cover its short-term liabilities using only its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.
Looking at the trend, the company's cash ratio decreased from 0.20 in December 2022 to 0.09 in March 2022, suggesting a substantial decline in its liquidity position. However, there was a significant improvement in the cash ratio in the subsequent quarters, reaching 0.16 in March 2023.
While a cash ratio of 0.14 in September and December 2023 indicates that the company has sufficient cash to cover 14% of its current liabilities, there may be further room for improvement.
It would be essential for stakeholders to monitor the trend in the cash ratio closely to ensure that the company maintains an adequate level of liquid assets to meet its short-term obligations.
Peer comparison
Dec 31, 2023