United Rentals Inc (URI)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,249,000 | 2,933,000 | 2,723,000 | 2,151,000 | 2,017,000 |
| Total current liabilities | US$ in thousands | 3,323,000 | 3,637,000 | 2,445,000 | 2,603,000 | 1,890,000 |
| Current ratio | 0.98 | 0.81 | 1.11 | 0.83 | 1.07 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,249,000K ÷ $3,323,000K
= 0.98
The current ratio of United Rentals Inc, as indicated by the financial data, has displayed fluctuations over the past five years.
As of December 31, 2020, the current ratio stood at 1.07, indicating that the company had $1.07 in current assets to cover every $1 in current liabilities. However, by December 31, 2021, the current ratio decreased to 0.83, suggesting a potential liquidity challenge as the company had less current assets available to meet its short-term obligations.
During the subsequent years, there was some improvement in the company's liquidity position. By December 31, 2022, the current ratio increased to 1.11, indicating a stronger ability to cover short-term liabilities with current assets. However, by the end of December 31, 2023, the current ratio declined to 0.81, signaling a deterioration in short-term liquidity.
In the most recent period ending December 31, 2024, the current ratio improved to 0.98, although it still remains below the ideal threshold of 1. This suggests that United Rentals Inc may still face challenges in meeting its short-term obligations with its current asset base.
Overall, the fluctuating trend in the current ratio over the past five years indicates varying levels of liquidity risk for United Rentals Inc, highlighting the importance of monitoring and managing short-term liquidity effectively to ensure financial stability and operational continuity.
Peer comparison
Dec 31, 2024