United Rentals Inc (URI)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,827,000 | 3,232,000 | 2,277,000 | 1,800,000 | 2,152,000 |
| Interest expense | US$ in thousands | 635,000 | 445,000 | 424,000 | 669,000 | 648,000 |
| Interest coverage | 6.03 | 7.26 | 5.37 | 2.69 | 3.32 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $3,827,000K ÷ $635,000K
= 6.03
The interest coverage ratio for United Rentals, Inc. has shown a fluctuating trend over the past five years. The company's ability to cover its interest expenses improved from 2019 to 2022, with the ratio increasing from 3.35 to 7.26. However, there was a slight decline in 2023, with the ratio decreasing to 6.07. Despite this dip, the company's interest coverage remains robust, indicating that it is generating ample earnings to service its interest obligations. Overall, while there has been some variability, United Rentals, Inc. has generally maintained a healthy interest coverage position in the past five years.
Peer comparison
Dec 31, 2023