United Rentals Inc (URI)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 4,065,000 | 4,041,000 | 4,018,000 | 3,939,000 | 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 |
| Interest expense (ttm) | US$ in thousands | 691,000 | 672,000 | 657,000 | 645,000 | 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 |
| Interest coverage | 5.88 | 6.01 | 6.12 | 6.11 | 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 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $4,065,000K ÷ $691,000K
= 5.88
The interest coverage ratio of United Rentals Inc has shown a fluctuating trend over the past few years, but generally indicates the company's ability to meet interest expenses with its operating income. The ratio was around 3.38 as of March 31, 2020, and has gradually increased to reach a peak of 7.27 as of September 30, 2022. This signifies an improvement in the company's ability to cover interest payments from its earnings.
However, there was a slight decline in the interest coverage ratio in the following quarters, with values ranging between 6.03 to 6.28 up to June 30, 2024. Despite the slight decrease, the ratios remain at a relatively stable level, indicating that United Rentals Inc continues to have sufficient earnings to cover its interest obligations comfortably.
Overall, the trend in United Rentals Inc's interest coverage ratio reflects a generally positive financial position, with the company showing a consistent ability to generate enough operating income to cover its interest expenses.
Peer comparison
Dec 31, 2024