United Rentals Inc (URI)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| 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 | 3.15 | 3.42 | 3.39 | 3.93 | 4.95 |
United Rentals, Inc.'s solvency ratios demonstrate its ability to meet its long-term financial obligations. The trend in the debt-to-assets ratio indicates a consistent improvement in the company's ability to cover its liabilities with its assets, decreasing from 0.60 in 2019 to 0.45 in 2023. This suggests that the company's reliance on debt to finance its assets has declined, which is generally considered positive for solvency.
Similarly, the debt-to-capital and debt-to-equity ratios have shown improvement over the years, indicating that United Rentals has been successful in reducing its reliance on debt financing in relation to its capital and equity. These trends are favorable, as they suggest a stronger financial position and reduced risk of financial distress.
Furthermore, the financial leverage ratio has also seen a consistent decline, indicating a reduction in the company's reliance on debt to finance its assets. Overall, the solvency ratios display a positive trend, signaling an improving financial position and reduced risk of insolvency for United Rentals, Inc.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 6.03 | 7.26 | 5.37 | 2.69 | 3.32 |
United Rentals, Inc.'s interest coverage has shown fluctuation over the past five years. The interest coverage ratio, which indicates the company's ability to meet interest obligations, was 6.07 in 2023, down from 7.26 in 2022 and 5.38 in 2021. This signifies a decrease in the company's ability to cover interest expenses with its earnings in 2023 compared to the prior year. However, it is worth noting that the 2023 figure is still higher than the ratios in 2020 and 2019, indicating an overall improvement in the company's ability to cover interest expenses over the five-year period. Nonetheless, further analysis of the company's financial performance and capital structure is advisable to gain a comprehensive understanding of its overall financial health.