United Rentals Inc (URI)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.27 | 3.15 | 3.42 | 3.39 | 3.93 |
United Rentals Inc has consistently maintained very strong solvency ratios over the years. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been consistently at 0.00, indicating that the company has no debt relative to its assets, capital, or equity. This reflects a low level of financial risk and a healthy balance sheet structure.
The Financial leverage ratio has shown slight fluctuations over the years, ranging from 3.15 to 3.93. This ratio indicates the proportion of the company's assets that are financed by debt, with a higher ratio implying higher financial leverage. Despite the fluctuations, the ratio remains within a reasonable range, suggesting that United Rentals Inc has a balanced mix of debt and equity in its capital structure.
Overall, these solvency ratios demonstrate that United Rentals Inc has a solid financial position with a conservative approach to debt management, which enhances its ability to weather economic uncertainties and pursue growth opportunities.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 5.88 | 6.03 | 7.26 | 5.37 | 2.69 |
United Rentals Inc's interest coverage ratio has shown a positive trend over the past five years. In 2020, the company had an interest coverage ratio of 2.69, indicating that it was generating operating income 2.69 times higher than its interest expenses. By the end of 2021, the interest coverage ratio improved to 5.37, suggesting a healthier financial position with ample earnings to meet interest obligations. The trend continued to improve in 2022, reaching a ratio of 7.26, indicating even stronger financial health and better ability to cover interest expenses. However, there was a slight decrease in 2023 to 6.03, which may warrant further monitoring. By the end of 2024, the interest coverage ratio stood at 5.88, still indicating a strong ability to pay interest obligations. Overall, the trend signifies improving financial stability and a decreasing risk of default due to insufficient operating income to cover interest expenses.