United Rentals Inc (URI)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 25,589,000 | 24,183,000 | 20,292,000 | 17,868,000 | 18,970,000 |
| Total stockholders’ equity | US$ in thousands | 8,130,000 | 7,062,000 | 5,991,000 | 4,545,000 | 3,830,000 |
| Financial leverage ratio | 3.15 | 3.42 | 3.39 | 3.93 | 4.95 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $25,589,000K ÷ $8,130,000K
= 3.15
The financial leverage ratio of United Rentals, Inc. has exhibited a declining trend over the past five years, decreasing from 4.95 in 2019 to 3.15 in 2023. This indicates an improvement in the company's ability to meet its financial obligations using debt. A lower financial leverage ratio suggests that the company is relying less on debt to finance its operations and is becoming less leveraged over time. This trend may signal a more conservative approach to capital structure and reduced financial risk for the company. However, further analysis of the company's debt and equity structure is necessary to fully understand the implications of this declining trend in the financial leverage ratio.
Peer comparison
Dec 31, 2023