Name: United Rentals Inc. (NYSE:URI) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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United Rentals Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Short-term debt and current maturities of long-term debt	161)	906)	704)	997)	903)
Accounts payable	1,139)	816)	466)	454)	536)
Self-insurance accruals	68)	51)	54)	59)	46)
Accrued compensation and benefit costs	207)	187)	79)	86)	127)
Property and income taxes payable	113)	42)	45)	26)	103)
Restructuring reserves	6)	10)	19)	20)	31)
Interest payable	152)	126)	133)	142)	147)
Deferred revenue	131)	83)	51)	55)	56)
National accounts accrual	120)	95)	84)	87)	69)
Current operating lease liability	211)	202)	178)	178)	—)
Other	137)	85)	77)	94)	98)
Accrued expenses and other liabilities	1,145)	881)	720)	747)	677)
Current liabilities	2,445)	2,603)	1,890)	2,198)	2,116)
Long-term debt, excluding current maturities	11,209)	8,779)	8,978)	10,431)	10,844)
Deferred taxes	2,671)	2,154)	1,768)	1,887)	1,687)
Long-term operating lease liabilities	642)	621)	549)	533)	—)
Self-insurance accruals	109)	100)	73)	62)	60)
Income taxes payable	11)	5)	5)	14)	14)
Accrued compensation and benefit costs	34)	39)	60)	15)	9)
Other long-term liabilities	154)	144)	138)	91)	83)
Long-term liabilities	14,676)	11,698)	11,433)	12,942)	12,614)
Total liabilities	17,121)	14,301)	13,323)	15,140)	14,730)
Common stock, $0.01 par value	1)	1)	1)	1)	1)
Additional paid-in capital	2,626)	2,567)	2,482)	2,440)	2,408)
Retained earnings	9,656)	7,551)	6,165)	5,275)	4,101)
Treasury stock at cost	(4,957)	(3,957)	(3,957)	(3,700)	(2,870)
Accumulated other comprehensive loss	(264)	(171)	(146)	(186)	(237)
Stockholders’ equity	7,062)	5,991)	4,545)	3,830)	3,403)
Total liabilities and stockholders’ equity	24,183)	20,292)	17,868)	18,970)	18,133)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

The overall financial position shows a steady expansion of the balance sheet, with total liabilities and stockholders' equity increasing from 18,133 million USD in 2018 to 24,183 million USD by 2022. While total liabilities grew during this period, the rate of increase in stockholders' equity was more pronounced, indicating a strengthening of the company's internal capital base relative to its obligations.

Liability Structure and Trends: Total liabilities experienced a fluctuation, dipping in 2020 to 13,323 million USD before rising to a peak of 17,121 million USD in 2022. This growth was primarily driven by long-term liabilities, which rose from 12,614 million USD in 2018 to 14,676 million USD in 2022. Specifically, long-term debt excluding current maturities showed a volatile trend, decreasing from 10,844 million USD in 2018 to 8,779 million USD in 2021, before increasing sharply to 11,209 million USD in 2022.; Current liabilities remained relatively stable, ending 2022 at 2,445 million USD compared to 2,116 million USD in 2018. A significant upward trend is observed in accounts payable, which more than doubled from 536 million USD in 2018 to 1,139 million USD in 2022, suggesting an increase in trade credit utilization. Conversely, short-term debt and current maturities of long-term debt saw a substantial reduction in 2022, falling to 161 million USD from 906 million USD in the previous year.; Deferred taxes exhibited a consistent upward trajectory, growing from 1,687 million USD in 2018 to 2,671 million USD in 2022, contributing steadily to the long-term liability balance.
Stockholders' Equity and Capital Management: Stockholders' equity demonstrated robust and consistent growth, increasing every year from 3,403 million USD in 2018 to 7,062 million USD in 2022. The primary driver of this expansion was retained earnings, which grew from 4,101 million USD to 9,656 million USD over the five-year period, reflecting strong cumulative profitability.; A simultaneous increase in treasury stock at cost is observed, moving from -2,870 million USD in 2018 to -4,957 million USD in 2022. This indicates a persistent strategy of share repurchases, which acted as a partial offset to the growth in retained earnings.
Solvency and Leverage Observations: The relationship between total liabilities and stockholders' equity improved significantly over the analyzed period. In 2018, total liabilities were approximately 4.3 times the value of stockholders' equity. By 2022, this ratio decreased to approximately 2.4 times, signaling a reduction in financial leverage and an improved solvency profile.; The growth in equity, powered by retained earnings, has outpaced the growth in total liabilities, suggesting that the organization is increasingly financing its assets through internal funding rather than external debt.

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