United Rentals Inc (URI)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 3,827,000 | 3,788,000 | 3,610,000 | 3,400,000 | 3,232,000 | 2,953,000 | 2,711,000 | 2,477,000 | 2,277,000 | 2,042,000 | 1,914,000 | 1,814,000 | 1,800,000 | 1,889,000 | 1,994,000 | 2,142,000 | 2,152,000 | 2,116,000 | 2,038,000 | 1,979,000 |
| Interest expense (ttm) | US$ in thousands | 635,000 | 606,000 | 549,000 | 501,000 | 445,000 | 406,000 | 432,000 | 419,000 | 424,000 | 456,000 | 602,000 | 632,000 | 669,000 | 714,000 | 583,000 | 633,000 | 648,000 | 620,000 | 591,000 | 523,000 |
| Interest coverage | 6.03 | 6.25 | 6.58 | 6.79 | 7.26 | 7.27 | 6.28 | 5.91 | 5.37 | 4.48 | 3.18 | 2.87 | 2.69 | 2.65 | 3.42 | 3.38 | 3.32 | 3.41 | 3.45 | 3.78 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $3,827,000K ÷ $635,000K
= 6.03
United Rentals, Inc.'s interest coverage has shown a generally consistent and healthy trend over the past eight quarters, with values consistently above 5. This indicates the company's strong ability to meet its interest obligations from its operating income. The highest interest coverage of 7.28 was recorded in the third quarter of 2022, showing a strong ability to meet interest payments. The slight decrease in the last two quarters compared to the peak in the first quarter of 2023 may warrant further investigation, but overall, the company's interest coverage remains at a commendable level, reflecting a sound financial position.
Peer comparison
Dec 31, 2023