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.

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 financial data indicates several notable trends in the company’s liabilities, equity, and overall financial structure over the five-year period ending December 31, 2022.

Current Liabilities: Current liabilities experienced fluctuations, starting at $2,116 million in 2018, reaching a low of $1,890 million in 2020, then increasing sharply to $2,603 million in 2021 before slightly decreasing to $2,445 million in 2022. Key components such as accounts payable rose steadily, from $536 million in 2018 to $1,139 million in 2022, indicating an increasing obligation to suppliers or vendors. Accrued compensation and benefit costs saw a significant spike in 2021 and 2022, suggesting increased employee-related expenses or changes in compensation structures. Property and income taxes payable showed volatility but an overall increase by 2022, possibly reflecting changes in tax obligations. Additionally, current operating lease liabilities appeared starting from 2019 and gradually increased, reflecting lease obligations in current liabilities.
Long-Term Liabilities: Long-term debt, excluding current maturities, generally declined from 2018 ($10,844 million) to 2021 ($8,779 million), then rose notably in 2022 to $11,209 million. This suggests cycles of debt repayment followed by new borrowings or refinancing. Deferred taxes increased steadily, indicating growing tax liabilities over the years. Long-term operating lease liabilities showed an upward trend as well, starting from $533 million in 2019 and increasing to $642 million in 2022, likely due to lease accounting standards or increased leasing activity. Other long-term liabilities exhibited moderate growth, reflecting increased long-term obligations.
Total Liabilities: Total liabilities decreased from $15,140 million in 2019 to $13,323 million in 2020 but then increased to $17,121 million by 2022. This overall rise is driven by increases in both current and long-term liabilities in the latter years, indicating a larger financial leverage or expanded operational scale.
Stockholders’ Equity: Stockholders’ equity grew steadily from $3,403 million in 2018 to $7,062 million in 2022. Retained earnings showed a consistent and significant increase, from $4,101 million to $9,656 million, demonstrating reinvested profits over time. Additional paid-in capital also experienced gradual growth, while treasury stock at cost increased in negative value, indicating ongoing repurchases of company shares, which reduced equity. Accumulated other comprehensive loss fluctuated but ended more negative at -$264 million in 2022, potentially reflecting unrealized losses in other comprehensive income components.
Total Liabilities and Stockholders’ Equity: The sum of total liabilities and equity rose from $18,133 million in 2018 to $24,183 million in 2022, indicating overall growth in the company’s balance sheet size. This expansion could be attributed to business growth, increased capital investments, or financing activities.

In summary, the company’s financial data reflect an expanding operational and financial scale with increased liabilities, particularly in accounts payable and long-term debt components, alongside growing retained earnings and equity. The increase in treasury stock suggests active share buyback programs. The data also highlight variations in current liabilities and deferred tax obligations that may warrant further analysis to understand their impact on liquidity and financial strategy.

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United Rentals Inc. (NYSE:URI)

Balance Sheet: Liabilities and Stockholders’ Equity