United Rentals Inc (URI)
Liquidity ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.98 | 0.82 | 0.81 | 0.89 | 0.81 | 0.81 | 0.74 | 1.15 | 1.11 | 1.03 | 1.07 | 0.77 | 0.83 | 0.80 | 0.85 | 1.09 | 1.07 | 0.90 | 0.84 | 1.11 |
| Quick ratio | 0.85 | 0.71 | 0.69 | 0.79 | 0.71 | 0.70 | 0.62 | 0.94 | 0.86 | 0.89 | 0.90 | 0.66 | 0.70 | 0.70 | 0.68 | 0.83 | 0.80 | 0.78 | 0.70 | 0.96 |
| Cash ratio | 0.14 | 0.12 | 0.12 | 0.13 | 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 |
United Rentals Inc's liquidity ratios indicate a fluctuating trend over the years. The current ratio, which measures the company's ability to cover short-term obligations with current assets, fluctuated between 0.74 and 1.15. This suggests some variability in the company's liquidity position.
The quick ratio, which excludes inventory from current assets to provide a more stringent measure of liquidity, ranged from 0.62 to 0.94. This indicates that the company may have struggled at times to meet its short-term obligations without relying on inventory.
The cash ratio, representing the proportion of cash and cash equivalents to current liabilities, fluctuated between 0.03 and 0.26. This suggests that United Rentals Inc may have had periods with low levels of cash to cover its short-term liabilities.
Overall, the liquidity ratios of United Rentals Inc show variability over time, indicating potential fluctuations in its ability to meet short-term obligations with its current assets and cash reserves. Further analysis and monitoring of the company's liquidity position may be warranted to assess its financial health.
See also:
Additional liquidity measure
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 34.31 | 17.19 | 8.73 | 23.96 | 26.80 | 18.64 | 5.43 | 14.22 | 13.02 | 10.13 | 9.19 | 18.46 | 22.41 | 5.95 | 9.72 | 23.19 | 32.99 | 26.39 | 36.01 | 31.57 |
The cash conversion cycle (CCC) of United Rentals Inc measures the time it takes for the company to convert its investments in inventory and accounts receivable into cash flows from customer sales. A shorter CCC indicates efficient management of working capital and quicker conversion of assets into cash.
Analyzing the CCC data provided for United Rentals Inc:
- The CCC fluctuated throughout the timeline, showing variability in the efficiency of the company's cash conversion process.
- From March 31, 2020, to June 30, 2021, the CCC showed a decreasing trend, indicating improvements in managing inventory and receivables.
- The CCC reached its lowest point of 5.43 days on June 30, 2023, suggesting a highly efficient cash conversion process during that period.
- However, after June 30, 2023, the CCC began to increase gradually, indicating potential challenges in managing working capital efficiently.
- The CCC peaked at 34.31 days on December 31, 2024, which may suggest delays in converting inventory and receivables into cash.
Overall, United Rentals Inc should focus on maintaining a consistently low CCC to ensure efficient management of working capital and maximize cash flow generation from sales operations. Monitoring and improving the CCC can help optimize the company's liquidity position and overall financial performance.