Debt to Equity
since 2005
Calculation
United Rentals Inc., debt to equity, long-term trends, calculation
| Debt to equity | = | Short-term debt and long-term debt1 | ÷ | Stockholders’ equity (deficit)1 | |
|---|---|---|---|---|---|
| Dec 31, 2022 | 1.61 | = | 11,370) | ÷ | 7,062) |
| Dec 31, 2021 | 1.62 | = | 9,685) | ÷ | 5,991) |
| Dec 31, 2020 | 2.13 | = | 9,682) | ÷ | 4,545) |
| Dec 31, 2019 | 2.98 | = | 11,428) | ÷ | 3,830) |
| Dec 31, 2018 | 3.45 | = | 11,747) | ÷ | 3,403) |
| Dec 31, 2017 | 3.04 | = | 9,440) | ÷ | 3,106) |
| Dec 31, 2016 | 4.73 | = | 7,790) | ÷ | 1,648) |
| Dec 31, 2015 | 5.53 | = | 8,162) | ÷ | 1,476) |
| Dec 31, 2014 | 4.48 | = | 8,052) | ÷ | 1,796) |
| Dec 31, 2013 | 3.92 | = | 7,173) | ÷ | 1,828) |
| Dec 31, 2012 | 4.77 | = | 7,364) | ÷ | 1,543) |
| Dec 31, 2011 | 47.53 | = | 3,042) | ÷ | 64) |
| Dec 31, 2010 | — | = | 2,929) | ÷ | (20) |
| Dec 31, 2009 | — | = | 3,075) | ÷ | (19) |
| Dec 31, 2008 | — | = | 3,345) | ÷ | (29) |
| Dec 31, 2007 | 1.35 | = | 2,716) | ÷ | 2,018) |
| Dec 31, 2006 | 1.76 | = | 2,702) | ÷ | 1,538) |
| Dec 31, 2005 | 2.56 | = | 3,152) | ÷ | 1,229) |
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 financial trajectory from 2005 to 2022 is characterized by three distinct phases: an initial period of deleveraging, a severe capital crisis resulting in negative equity, and a subsequent long-term recovery and capital strengthening phase.
- Initial Deleveraging and Capital Crisis (2005–2011)
- Between 2005 and 2007, a reduction in the debt-to-equity ratio from 2.56 to 1.35 was observed, driven by a combination of decreasing total debt and increasing stockholders' equity. This trend reversed sharply in 2008, when stockholders' equity shifted to a deficit of 29 million USD. Equity remained negative through 2010, rendering the debt-to-equity ratio mathematically undefined or non-representative during this window. By 2011, equity returned to a positive balance of 64 million USD, which caused a temporary spike in the debt-to-equity ratio to 47.53 due to the extremely low equity base relative to 3.04 billion USD in debt.
- Recovery and Debt Expansion (2012–2016)
- A significant shift in the capital structure occurred in 2012, as total debt increased to 7.36 billion USD. Concurrent growth in stockholders' equity to 1.54 billion USD stabilized the debt-to-equity ratio at 4.77. Through 2016, the ratio fluctuated between 3.92 and 5.53, reflecting a period where debt levels remained high, peaking at 8.16 billion USD in 2014, while equity growth remained moderate.
- Capital Strengthening and Ratio Compression (2017–2022)
- From 2017 onward, a consistent trend of capital strengthening is evident. Although total debt reached a peak of 11.75 billion USD in 2018, stockholders' equity experienced aggressive growth, rising from 3.11 billion USD in 2017 to 7.06 billion USD by 2022. This substantial increase in the equity base resulted in a steady decline of the debt-to-equity ratio, which fell from 3.04 in 2017 to 1.61 by the end of 2022. This indicates a strategic shift toward a more balanced capital structure and reduced financial leverage relative to equity.
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Comparison to Competitors
United Rentals Inc., debt to equity, 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 | 1.61 | — | 2.33 | 0.51 | 0.89 | 1.17 | 1.68 | 0.44 |
| Dec 31, 2021 | 1.62 | — | 2.29 | 0.52 | 0.87 | 1.06 | 1.07 | 0.43 |
| Dec 31, 2020 | 2.13 | — | 2.42 | 0.54 | 2.11 | 1.28 | 2.02 | 0.44 |
| Dec 31, 2019 | 2.98 | — | 2.58 | 0.52 | 3.21 | 0.87 | 4.05 | 1.04 |
| Dec 31, 2018 | 3.45 | 40.85 | 2.60 | 0.47 | 3.55 | 0.89 | 9.04 | 1.18 |
| Dec 31, 2017 | 3.04 | 31.32 | 2.55 | 0.45 | 2.09 | 1.04 | — | 0.93 |
| Dec 31, 2016 | 4.73 | 12.18 | 2.80 | 0.56 | 1.80 | 0.81 | 9.45 | 0.87 |
| Dec 31, 2015 | 5.53 | 1.57 | 2.57 | 0.56 | 2.02 | 0.66 | 4.62 | 0.75 |
| Dec 31, 2014 | 4.48 | 1.05 | 2.35 | 0.57 | 2.85 | 0.49 | 1.81 | 0.63 |
| Dec 31, 2013 | 3.92 | 0.65 | 1.81 | 0.57 | 2.93 | 0.51 | 1.25 | 0.64 |
| Dec 31, 2012 | 4.77 | 1.77 | 2.29 | 0.72 | 3.37 | 0.58 | 157.90 | 0.90 |
| Dec 31, 2011 | 47.53 | 3.52 | 2.69 | 0.51 | 3.89 | 0.70 | 6.45 | 0.47 |
| Dec 31, 2010 | — | 4.49 | 2.63 | 0.47 | 4.02 | 0.62 | 1.35 | 0.48 |
| Dec 31, 2009 | — | 6.07 | 3.62 | 0.51 | 4.35 | 0.86 | 1.22 | 0.49 |
| Dec 31, 2008 | — | — | 5.84 | 0.68 | 5.00 | 1.17 | 1.24 | 0.72 |
| Dec 31, 2007 | 1.35 | 0.91 | 3.20 | 0.66 | 4.45 | 0.83 | 0.44 | 0.43 |
| Dec 31, 2006 | 1.76 | 2.01 | 3.98 | 0.63 | 3.85 | 0.52 | 0.64 | 0.46 |
| Dec 31, 2005 | 2.56 | 0.97 | 3.05 | 0.65 | 3.39 | 0.45 | 0.61 | 0.48 |
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., debt to equity, long-term trends, comparison to sector (capital goods)
| United Rentals Inc. | Capital Goods | |
|---|---|---|
| Dec 31, 2022 | 1.61 | 1.33 |
| Dec 31, 2021 | 1.62 | 1.26 |
| Dec 31, 2020 | 2.13 | 1.75 |
| Dec 31, 2019 | 2.98 | 2.08 |
| Dec 31, 2018 | 3.45 | 2.03 |
| Dec 31, 2017 | 3.04 | 1.74 |
| Dec 31, 2016 | 4.73 | 1.60 |
| Dec 31, 2015 | 5.53 | 1.64 |
| Dec 31, 2014 | 4.48 | 2.06 |
| Dec 31, 2013 | 3.92 | 2.00 |
| Dec 31, 2012 | 4.77 | 2.56 |
| Dec 31, 2011 | 47.53 | 3.04 |
| Dec 31, 2010 | — | 3.10 |
| Dec 31, 2009 | — | 3.46 |
| Dec 31, 2008 | — | 4.19 |
| Dec 31, 2007 | 1.35 | 3.21 |
| Dec 31, 2006 | 1.76 | 3.02 |
| Dec 31, 2005 | 2.56 | 2.53 |
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., debt to equity, long-term trends, comparison to industry (industrials)
| United Rentals Inc. | Industrials | |
|---|---|---|
| Dec 31, 2022 | 1.61 | 1.42 |
| Dec 31, 2021 | 1.62 | 1.37 |
| Dec 31, 2020 | 2.13 | 1.82 |
| Dec 31, 2019 | 2.98 | 1.82 |
| Dec 31, 2018 | 3.45 | 1.85 |
| Dec 31, 2017 | 3.04 | 1.65 |
| Dec 31, 2016 | 4.73 | 1.54 |
| Dec 31, 2015 | 5.53 | 1.51 |
| Dec 31, 2014 | 4.48 | 1.89 |
| Dec 31, 2013 | 3.92 | 1.79 |
| Dec 31, 2012 | 4.77 | 2.29 |
| Dec 31, 2011 | 47.53 | 2.60 |
| Dec 31, 2010 | — | 2.68 |
| Dec 31, 2009 | — | 3.01 |
| Dec 31, 2008 | — | 3.54 |
| Dec 31, 2007 | 1.35 | 2.73 |
| Dec 31, 2006 | 1.76 | 2.49 |
| Dec 31, 2005 | 2.56 | 2.42 |
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).