United Rentals Inc (URI)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 4,065,000 | 3,827,000 | 3,232,000 | 2,277,000 | 1,800,000 |
| Interest expense | US$ in thousands | 691,000 | 635,000 | 445,000 | 424,000 | 669,000 |
| Interest coverage | 5.88 | 6.03 | 7.26 | 5.37 | 2.69 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $4,065,000K ÷ $691,000K
= 5.88
United Rentals Inc's interest coverage has shown a positive trend over the past five years. In December 2020, the interest coverage ratio stood at 2.69, indicating the company's ability to cover its interest expenses was somewhat limited. However, by December 2024, the ratio had improved to 5.88, reflecting a more comfortable position in terms of meeting interest obligations. The consistent upward trend suggests that United Rentals Inc has been able to generate sufficient operating income to comfortably cover its interest expenses over this period. This indicates improved financial health and lower risk of default due to insufficient earnings to cover interest payments.
Peer comparison
Dec 31, 2024