United Rentals Inc (URI)

Financial leverage ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	25,589,000	25,832,000	25,506,000	24,629,000	24,183,000	21,419,000	20,820,000	20,169,000	20,292,000	20,306,000	19,641,000	17,542,000	17,868,000	17,908,000	17,900,000	18,868,000	18,970,000	19,405,000	19,047,000	18,586,000
Total stockholders’ equity	US$ in thousands	8,130,000	7,756,000	7,414,000	7,130,000	7,062,000	6,353,000	6,046,000	6,084,000	5,991,000	5,483,000	5,094,000	4,745,000	4,545,000	4,161,000	3,907,000	3,635,000	3,830,000	3,650,000	3,478,000	3,375,000
Financial leverage ratio		3.15	3.33	3.44	3.45	3.42	3.37	3.44	3.32	3.39	3.70	3.86	3.70	3.93	4.30	4.58	5.19	4.95	5.32	5.48	5.51

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $25,589,000K ÷ $8,130,000K
= 3.15

The financial leverage ratio measures the extent to which a company is relying on debt to finance its assets. A higher ratio indicates higher financial leverage and potentially higher financial risk. United Rentals, Inc. has shown fluctuation in its financial leverage ratio over the past eight quarters, with the ratio ranging from 3.15 to 3.45. This indicates that the company has been relying heavily on debt to finance its assets. It's important for stakeholders to monitor this ratio closely as higher leverage can make the company more vulnerable to economic downturns or interest rate fluctuations. The company's management may need to evaluate its capital structure and debt management strategies to ensure sustainable and optimal leverage levels.