United Rentals Inc (URI)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 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 | 4.95 | 5.32 | 5.48 | 5.51 |
The solvency ratios of United Rentals, Inc. indicate the company's ability to meet its long-term debt obligations. The debt-to-assets ratio, which measures the proportion of total assets financed by creditors, decreased slightly from 0.47 in March 2022 to 0.45 in December 2023, suggesting improved asset coverage for its debt.
The debt-to-capital and debt-to-equity ratios both increased over the same period, indicating a higher level of financial leverage. Specifically, the debt-to-capital ratio increased from 0.61 to 0.59, and the debt-to-equity ratio rose from 1.56 to 1.42, signifying higher reliance on debt to finance the company's operations.
Moreover, the financial leverage ratio, which measures the extent to which the company's operations are funded by equity versus debt, increased from 3.32 to 3.15, reflecting a higher degree of financial risk.
Overall, the trends in United Rentals, Inc.'s solvency ratios indicate a slight improvement in asset coverage for its debt, but also an increased reliance on debt financing and higher financial leverage, which may pose risks in terms of the company's ability to service its debt in the long term.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio for United Rentals, Inc. has shown a consistent upward trend from March 31, 2022, to December 31, 2023. This indicates the company's ability to meet its interest obligations from its operating income. The ratio has consistently remained above 6, peaking at 7.28 on September 30, 2022. This demonstrates the company's strong capacity to cover its interest expenses, providing a favorable indication of its financial stability and ability to service its debt. However, despite the overall positive trend, it is important to monitor the ratio in future periods to ensure that the company continues to maintain a healthy level of interest coverage.