United Rentals Inc (URI)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 28,163,000 | 28,412,000 | 27,613,000 | 26,658,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 8,622,000 | 8,581,000 | 8,281,000 | 8,120,000 | 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 |
| Financial leverage ratio | 3.27 | 3.31 | 3.33 | 3.28 | 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 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $28,163,000K ÷ $8,622,000K
= 3.27
United Rentals Inc's financial leverage ratio has been on a declining trend from March 31, 2020, where it stood at 5.19, to December 31, 2024, where it decreased to 3.27. This indicates a reduction in the company's reliance on debt financing compared to its equity.
The decreasing trend suggests that United Rentals Inc has been effectively managing its debt levels over the analyzed period. A lower financial leverage ratio generally indicates a lower level of financial risk and greater financial stability for the company.
The ratio decreased steadily over the years, with slight fluctuations in between, pointing towards a consistent effort to optimize the company's capital structure and reduce financial risk. The trend reflects positively on the company's ability to meet its financial obligations and indicates a potential improvement in its overall financial health.
Overall, the decreasing financial leverage ratio of United Rentals Inc signifies a positive trend in terms of the company's financial stability and risk management.
Peer comparison
Dec 31, 2024