Current Ratio
since 2005
Calculation
United Rentals Inc., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Dec 31, 2022 | 1.11 | = | 2,723) | ÷ | 2,445) |
| Dec 31, 2021 | 0.83 | = | 2,151) | ÷ | 2,603) |
| Dec 31, 2020 | 1.07 | = | 2,017) | ÷ | 1,890) |
| Dec 31, 2019 | 0.84 | = | 1,842) | ÷ | 2,198) |
| Dec 31, 2018 | 0.83 | = | 1,761) | ÷ | 2,116) |
| Dec 31, 2017 | 1.06 | = | 1,772) | ÷ | 1,668) |
| Dec 31, 2016 | 1.15 | = | 1,361) | ÷ | 1,184) |
| Dec 31, 2015 | 1.05 | = | 1,294) | ÷ | 1,233) |
| Dec 31, 2014 | 1.05 | = | 1,546) | ÷ | 1,478) |
| Dec 31, 2013 | 1.06 | = | 1,362) | ÷ | 1,286) |
| Dec 31, 2012 | 0.99 | = | 1,343) | ÷ | 1,351) |
| Dec 31, 2011 | 0.84 | = | 723) | ÷ | 864) |
| Dec 31, 2010 | 1.27 | = | 725) | ÷ | 569) |
| Dec 31, 2009 | 1.53 | = | 705) | ÷ | 461) |
| Dec 31, 2008 | 1.65 | = | 703) | ÷ | 427) |
| Dec 31, 2007 | 2.15 | = | 1,120) | ÷ | 520) |
| Dec 31, 2006 | 1.68 | = | 1,005) | ÷ | 599) |
| Dec 31, 2005 | — | = | —) | ÷ | —) |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The liquidity position from 2006 to 2022 is characterized by a transition from a high-liquidity buffer to a more lean operational model, with the current ratio fluctuating between a high of 2.15 and a low of 0.83.
- Initial Liquidity Decline (2006–2010)
- A pronounced downward trend in the current ratio is observed during this period, falling from 2.15 in 2006 to 0.84 in 2010. This deterioration is primarily attributed to a contraction in current assets, which decreased from 1,005 million USD in 2006 to 723 million USD by 2010, while current liabilities experienced a net increase over the same period.
- Period of Stabilization (2011–2017)
- Between 2011 and 2017, the current ratio remained relatively stable, oscillating closely around the 1.0 threshold, with a peak of 1.15 in 2016. During this interval, current assets grew from 1,343 million USD to 1,772 million USD, closely mirrored by an increase in current liabilities from 1,351 million USD to 1,668 million USD, indicating a balanced management of short-term obligations.
- Recent Volatility and Scale Expansion (2018–2022)
- The final five-year period is marked by volatility and a significant expansion of the balance sheet. The current ratio dipped to 0.83 in 2018 and again in 2021, before recovering to 1.11 by December 31, 2022. While liquidity ratios fluctuated, the absolute scale of operations increased substantially, with current assets reaching a period high of 2,723 million USD and current liabilities peaking at 2,603 million USD in 2021.
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Comparison to Competitors
United Rentals Inc., current ratio, long-term trends, comparison to competitors
| United Rentals Inc. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 1.11 | 1.22 | 1.39 | 1.38 | 1.16 | 1.25 | 1.32 | 1.09 |
| Dec 31, 2021 | 0.83 | 1.33 | 1.46 | 1.04 | 1.28 | 1.30 | 1.42 | 1.19 |
| Dec 31, 2020 | 1.07 | 1.39 | 1.53 | 1.56 | 1.58 | 1.47 | 1.39 | 1.21 |
| Dec 31, 2019 | 0.84 | 1.05 | 1.47 | 1.70 | 1.16 | 1.34 | 1.22 | 1.08 |
| Dec 31, 2018 | 0.83 | 1.08 | 1.37 | 1.47 | — | 1.29 | 1.12 | 1.13 |
| Dec 31, 2017 | 1.06 | 1.16 | 1.35 | 1.64 | — | 1.38 | 1.38 | 1.35 |
| Dec 31, 2016 | 1.15 | 1.25 | 1.22 | 1.27 | — | 1.41 | 1.20 | 1.30 |
| Dec 31, 2015 | 1.05 | 1.35 | 1.31 | 1.43 | — | 1.09 | 1.15 | 1.18 |
| Dec 31, 2014 | 1.05 | 1.20 | 1.39 | 1.51 | — | 1.50 | 1.11 | 1.30 |
| Dec 31, 2013 | 1.06 | 1.26 | 1.40 | 1.78 | — | 1.49 | 1.20 | 1.29 |
| Dec 31, 2012 | 0.99 | 1.27 | 1.43 | 1.44 | — | 1.35 | 1.14 | 1.24 |
| Dec 31, 2011 | 0.84 | 1.21 | 1.33 | 1.60 | — | 1.31 | 1.16 | 1.38 |
| Dec 31, 2010 | 1.27 | 1.15 | 1.44 | 1.70 | — | 1.28 | 1.15 | 1.33 |
| Dec 31, 2009 | 1.53 | 1.07 | 1.39 | 1.68 | — | 1.25 | 1.17 | 1.29 |
| Dec 31, 2008 | 1.65 | 0.84 | 1.21 | 1.28 | — | 1.08 | 1.01 | 1.24 |
| Dec 31, 2007 | 2.15 | 0.86 | 1.15 | 1.30 | — | 1.15 | 1.11 | 1.26 |
| Dec 31, 2006 | 1.68 | 0.77 | 1.20 | 1.29 | — | 1.21 | 1.06 | 1.24 |
| Dec 31, 2005 | — | 0.78 | 1.19 | 1.21 | — | 1.15 | 1.12 | 1.12 |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Capital Goods)
United Rentals Inc., current ratio, long-term trends, comparison to sector (capital goods)
| United Rentals Inc. | Capital Goods | |
|---|---|---|
| Dec 31, 2022 | 1.11 | 1.22 |
| Dec 31, 2021 | 0.83 | 1.31 |
| Dec 31, 2020 | 1.07 | 1.43 |
| Dec 31, 2019 | 0.84 | 1.17 |
| Dec 31, 2018 | 0.83 | 1.17 |
| Dec 31, 2017 | 1.06 | 1.29 |
| Dec 31, 2016 | 1.15 | 1.27 |
| Dec 31, 2015 | 1.05 | 1.26 |
| Dec 31, 2014 | 1.05 | 1.29 |
| Dec 31, 2013 | 1.06 | 1.34 |
| Dec 31, 2012 | 0.99 | 1.31 |
| Dec 31, 2011 | 0.84 | 1.29 |
| Dec 31, 2010 | 1.27 | 1.28 |
| Dec 31, 2009 | 1.53 | 1.23 |
| Dec 31, 2008 | 1.65 | 1.07 |
| Dec 31, 2007 | 2.15 | 1.08 |
| Dec 31, 2006 | 1.68 | 1.05 |
| Dec 31, 2005 | — | 1.03 |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Industrials)
United Rentals Inc., current ratio, long-term trends, comparison to industry (industrials)
| United Rentals Inc. | Industrials | |
|---|---|---|
| Dec 31, 2022 | 1.11 | 1.20 |
| Dec 31, 2021 | 0.83 | 1.29 |
| Dec 31, 2020 | 1.07 | 1.41 |
| Dec 31, 2019 | 0.84 | 1.16 |
| Dec 31, 2018 | 0.83 | 1.13 |
| Dec 31, 2017 | 1.06 | 1.24 |
| Dec 31, 2016 | 1.15 | 1.22 |
| Dec 31, 2015 | 1.05 | 1.24 |
| Dec 31, 2014 | 1.05 | 1.26 |
| Dec 31, 2013 | 1.06 | 1.33 |
| Dec 31, 2012 | 0.99 | 1.30 |
| Dec 31, 2011 | 0.84 | 1.30 |
| Dec 31, 2010 | 1.27 | 1.28 |
| Dec 31, 2009 | 1.53 | 1.23 |
| Dec 31, 2008 | 1.65 | 1.06 |
| Dec 31, 2007 | 2.15 | 1.07 |
| Dec 31, 2006 | 1.68 | 1.05 |
| Dec 31, 2005 | — | 1.05 |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).