Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
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- Income Statement
- Analysis of Liquidity Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Enterprise Value (EV)
- Net Profit Margin since 2005
- Operating Profit Margin since 2005
- Current Ratio since 2005
- Debt to Equity since 2005
- Price to Earnings (P/E) since 2005
- Price to Book Value (P/BV) since 2005
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Solvency Ratios (Summary)
United Rentals Inc., solvency ratios (quarterly data)
Based on: 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
- Debt to Equity Ratios
- The debt to equity ratio exhibited a steady decline from 3.44 at the beginning of 2019 to 1.61 by the end of 2022, indicating a substantial reduction in reliance on equity financing relative to debt. Similarly, when considering operating lease liabilities, the ratio decreased from 3.59 to 1.70 over the same period. This trend signifies improved balance sheet strength and lower financial risk over the observed quarters.
- Debt to Capital Ratios
- Both standard and operating lease-inclusive debt to capital ratios showed consistent decreases from 0.77-0.78 in early 2019 to approximately 0.61-0.63 by the end of 2022. This reduction reflects a gradual shift towards a lower proportion of debt within the overall capital structure, enhancing financial stability.
- Debt to Assets Ratios
- The debt to assets ratio decreased from roughly 0.62-0.65 in early 2019 to approximately 0.46-0.50 by late 2022, whether computed with or without operating lease liabilities. This decline indicates a reduction in the proportion of assets financed by debt, suggesting improved asset coverage and potentially lower default risk.
- Financial Leverage
- Financial leverage declined notably from 5.51 in the first quarter of 2019 to around 3.4 by the end of 2022. This reduction aligns with lower debt levels and increased equity, indicating a more conservative financing approach and potentially less vulnerability to earnings volatility.
- Interest Coverage Ratio
- The interest coverage ratio showed an initial dip from 3.8 in early 2019 to around 2.66 in September 2020, indicating a period of tighter interest coverage. However, from that low point onward, the ratio rose steadily to a strong 7.3 by the end of 2022. This increasing trend reflects an improved ability to meet interest obligations from operating earnings, enhancing creditworthiness.
Debt Ratios
Coverage Ratios
Debt to Equity
United Rentals Inc., debt to equity calculation (quarterly data)
| 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Short-term debt and current maturities of long-term debt | |||||||||||||||||||||
| Long-term debt, excluding current maturities | |||||||||||||||||||||
| Total debt | |||||||||||||||||||||
| Stockholders’ equity | |||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||
| Debt to equity1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||
Based on: 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2022 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The analysis of recent quarterly financial data reveals several key trends concerning the company's leverage and equity position over the examined periods.
- Total Debt
- Total debt remained relatively stable from early 2019 through the first quarter of 2020, fluctuating slightly around 11,600 million US dollars. Starting mid-2020, total debt exhibited a declining trend, reaching a low point near 9,000 million US dollars by the first quarter of 2021. However, from the second quarter of 2021 onward, total debt showed a gradual increase again, peaking at approximately 11,370 million US dollars by the end of 2022.
- Stockholders’ Equity
- Stockholders' equity consistently increased throughout the entire period analyzed. Beginning at 3,375 million US dollars in early 2019, equity rose steadily each quarter, reaching just over 7,000 million US dollars by the last quarter of 2022. This steady rise indicates ongoing strengthening of the company's net asset position.
- Debt to Equity Ratio
- The debt to equity ratio declined notably from a high of 3.44 in the first quarter of 2019 to a low of approximately 1.56 by the end of 2022. The ratio exhibited a gradual downward trend with some minor fluctuations, signifying a substantial reduction in financial leverage relative to equity. The peak in leverage was observed during early 2019, followed by a progressive deleveraging phase that continued with increased equity and, at times, reduced debt levels. However, a slight uptick in this ratio toward the end of 2022 suggests a modest increase in leverage compared to the immediate prior quarters.
Overall, the company's financial position demonstrates a move towards lower leverage and stronger equity base over the course of nearly four years. This trend could indicate increasing financial stability and potentially reduced risk related to debt obligations. The uptick in total debt and debt to equity ratio near the end of 2022 warrants attention but remains at levels significantly below those in early 2019.
Debt to Equity (including Operating Lease Liability)
United Rentals Inc., debt to equity (including operating lease liability) calculation (quarterly data)
| 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Short-term debt and current maturities of long-term debt | |||||||||||||||||||||
| Long-term debt, excluding current maturities | |||||||||||||||||||||
| Total debt | |||||||||||||||||||||
| Long-term operating lease liabilities | |||||||||||||||||||||
| Total debt (including operating lease liability) | |||||||||||||||||||||
| Stockholders’ equity | |||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||
| Debt to equity (including operating lease liability)1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||
Based on: 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2022 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial metrics reveals notable trends in the company's leverage and equity position over the examined periods.
- Total debt (including operating lease liability)
- The total debt level fluctuated throughout the observed periods. Initially, debt remained relatively stable, hovering around 12 billion US dollars from early 2019 through the first quarter of 2020. Starting mid-2020, the debt showed a gradual decline, reaching a low point near 10 billion US dollars by early 2022. However, by the end of 2022, debt levels rose again, approaching 12 billion. This indicates a period of deleveraging followed by renewed borrowing or lease obligations increasing towards the last quarter of the period.
- Stockholders’ equity
- Stockholders' equity exhibited a consistent upward trajectory across all quarters, rising from approximately 3.4 billion US dollars at the start of 2019 to over 7 billion by the end of 2022. This steady increase reflects sustained capital accumulation, retained earnings growth, or equity financing efforts, contributing positively to the company’s net worth and financial stability.
- Debt to equity ratio (including operating lease liability)
- The debt to equity ratio showed a pronounced declining trend over the timeframe. Starting at a high of approximately 3.59 in early 2019, the ratio steadily decreased, reaching its lowest point of approximately 1.66 in early 2022. This decline suggests a strengthening equity base relative to debt, indicating reduced financial leverage and potentially enhanced creditworthiness. A slight increase towards late 2022, up to around 1.70, hints at a modest resurgence in leverage.
Overall, the financial data presents a scenario where the company has effectively increased its equity while managing to reduce its relative debt burden over most of the analyzed period. The recent uptick in total debt near the end of 2022 suggests strategic borrowing or lease commitments have increased, somewhat raising the leverage ratio but still maintaining it at a lower level compared to the beginning of the period.
Debt to Capital
United Rentals Inc., debt to capital calculation (quarterly data)
| 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Short-term debt and current maturities of long-term debt | |||||||||||||||||||||
| Long-term debt, excluding current maturities | |||||||||||||||||||||
| Total debt | |||||||||||||||||||||
| Stockholders’ equity | |||||||||||||||||||||
| Total capital | |||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||
| Debt to capital1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||
Based on: 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2022 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in the company's debt and capital structure over the examined periods.
- Total Debt
- Total debt remained relatively stable from March 2019 through December 2019, fluctuating slightly around the $11.4 billion to $11.7 billion range. Beginning in the first quarter of 2020, there is a clear downward trend in total debt, reaching its lowest level of approximately $9.7 billion by December 2020. However, following this reduction, total debt exhibits some volatility in 2021, initially rising and then falling slightly by the end of the year. In 2022, total debt generally remained near the $9.5 billion to $9.9 billion range through the third quarter but then increased more substantially to approximately $11.4 billion by the final quarter, indicating a return to higher debt levels similar to those observed in 2019.
- Total Capital
- Total capital demonstrated modest growth from March 2019 to December 2019, remaining in the $15.0 billion to $15.3 billion range. In 2020, capital levels decreased somewhat, reaching a low near $14.2 billion by the end of the year. The following year shows an increase in total capital, rising to over $15.6 billion by December 2021. This upward trend continues through 2022, with a pronounced increase in the last reported quarter, where total capital peaks at approximately $18.4 billion. Overall, total capital shows a pattern of decline in early 2020 followed by sustained growth through 2021 and 2022.
- Debt to Capital Ratio
- The debt to capital ratio displays a consistent downward trend across the data periods. In early 2019, the ratio was high at 0.77, indicating that debt constituted a significant portion of the company's capital structure. This ratio gradually decreases through 2020, reaching a low point of 0.62 by the end of that year, reflecting improved capital structure leverage through reduced relative debt. Although the ratio fluctuates slightly through 2021 and 2022, it remains in a narrower band between 0.61 and 0.67, evidencing a more balanced financial structure with a lower proportion of debt relative to total capital compared to 2019. The slight upticks seen concurrently with increased debt levels in late 2022 suggest some leverage increase but not returning to previous highs.
In summary, the company’s total debt decreased substantially in 2020 but started to increase again toward the end of 2022. Total capital dipped in early 2020 but then progressively grew, particularly in 2022, reaching the highest levels over the period. The debt to capital ratio indicates a significant deleveraging effort beginning in 2020, leading to a stronger equity position, though recent debt increases slightly reversed this trend without returning to earlier, higher leverage levels.
Debt to Capital (including Operating Lease Liability)
United Rentals Inc., debt to capital (including operating lease liability) calculation (quarterly data)
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Short-term debt and current maturities of long-term debt | |||||||||||||||||||||
| Long-term debt, excluding current maturities | |||||||||||||||||||||
| Total debt | |||||||||||||||||||||
| Long-term operating lease liabilities | |||||||||||||||||||||
| Total debt (including operating lease liability) | |||||||||||||||||||||
| Stockholders’ equity | |||||||||||||||||||||
| Total capital (including operating lease liability) | |||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||
| Debt to capital (including operating lease liability)1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||
Based on: 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2022 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= ÷ =
2 Click competitor name to see calculations.
The financial data reflects trends in total debt, total capital, and the debt-to-capital ratio over multiple quarters from early 2019 through the end of 2022.
- Total Debt (Including Operating Lease Liability)
-
Total debt remained relatively stable during 2019, fluctuating slightly around the $12.1 billion mark. In 2020, a downward trend is observed with debt decreasing steadily from approximately $12.1 billion in March to about $10.2 billion at year-end. This reduction continued into the first quarter of 2021, reaching roughly $9.6 billion. Mid-2021 shows a temporary increase, with debt rising to around $10.8 billion in June and September before declining again. From early 2022 onward, total debt shows moderate growth, rising from about $10.1 billion to $12.0 billion by the end of 2022.
- Total Capital (Including Operating Lease Liability)
-
Total capital remained mostly stable in 2019, just under $15.9 billion. There was a slight decline in 2020 to about $14.8 billion during the middle of the year but it then stabilized toward the latter part of 2020. A notable increase occurs starting in the first quarter of 2021, with total capital rising sharply from around $14.4 billion to more than $16.2 billion by the end of 2021. This upward trajectory continued through 2022, reaching nearly $19.1 billion by year-end, indicating a significant expansion in the company's capital base during this period.
- Debt to Capital Ratio (Including Operating Lease Liability)
-
The debt-to-capital ratio exhibited a gradual decline throughout the entire period, starting at approximately 0.78 during the first quarter of 2019 and dropping steadily to a low near 0.63 by the end of 2021. This trend indicates a decreasing reliance on debt relative to total capital. Throughout 2022, the ratio fluctuated slightly around the 0.62 to 0.63 range, suggesting a stabilization of the company’s capital structure with a modest proportion of debt.
Overall, the data suggests prudent deleveraging from 2019 into 2021, accompanied by capital growth, which has improved the capital structure in favor of equity or other non-debt financing. The rebound in total debt toward the end of 2022, amid continued capital growth, led to a relatively stable debt-to-capital ratio in that timeframe, indicating a balanced approach to leveraging as capital expanded significantly.
Debt to Assets
United Rentals Inc., debt to assets calculation (quarterly data)
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Short-term debt and current maturities of long-term debt | |||||||||||||||||||||
| Long-term debt, excluding current maturities | |||||||||||||||||||||
| Total debt | |||||||||||||||||||||
| Total assets | |||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||
| Debt to assets1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||
Based on: 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2022 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The analysis of the financial data reveals several notable trends in the company's leverage and asset management over the examined periods.
- Total Debt
- Total debt exhibited a gradual decline from March 2019 through December 2020, decreasing from approximately $11.6 billion to around $9.7 billion. This trend suggests a consistent effort to reduce liabilities during this timeframe. However, starting in the first quarter of 2021, the total debt began to rise again, reaching approximately $11.4 billion by the end of 2022. This resurgence may indicate renewed borrowing or increased financial obligations in the latter periods.
- Total Assets
- Total assets remained relatively stable during 2019 to 2020, fluctuating narrowly between about $18.6 billion and $17.9 billion, suggesting a steady asset base without major expansion or contraction. From early 2021 onwards, assets exhibited a clear upward trajectory, climbing from approximately $17.5 billion to over $24.1 billion by December 2022. This increase points to significant asset growth, which may reflect investments, acquisitions, or appreciation in asset value during this period.
- Debt to Assets Ratio
- The debt to assets ratio demonstrated a steady downward trend from 0.62 in March 2019 to 0.46 in September 2022, indicating a reduction in leverage relative to the company's asset base. The ratio decreased consistently, highlighting improved financial stability and lower risk from debt financing. However, there was a slight uptick to 0.47 in December 2022, coinciding with the increase in total debt observed in the same period. Despite this minor rise, the ratio remains substantially lower than earlier periods.
Overall, the data indicates that the company prioritized debt reduction and asset stability up until 2020, followed by substantial asset growth alongside some increase in debt levels beginning in 2021. The decreasing debt to assets ratio over the majority of the periods analyzed suggests enhanced financial leverage management, although the recent increment signals a potential shift toward higher indebtedness relative to assets that warrants further monitoring.
Debt to Assets (including Operating Lease Liability)
United Rentals Inc., debt to assets (including operating lease liability) calculation (quarterly data)
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Short-term debt and current maturities of long-term debt | |||||||||||||||||||||
| Long-term debt, excluding current maturities | |||||||||||||||||||||
| Total debt | |||||||||||||||||||||
| Long-term operating lease liabilities | |||||||||||||||||||||
| Total debt (including operating lease liability) | |||||||||||||||||||||
| Total assets | |||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||
| Debt to assets (including operating lease liability)1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||
Based on: 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2022 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several key trends concerning the company's leverage and asset base over the observed period.
- Total Debt (Including Operating Lease Liability)
- The total debt demonstrated a peak around the early part of the period, with figures near 12,000 million US dollars from March 2019 to March 2020. Thereafter, a consistent decline occurred, reaching the lowest levels near 10,000 million US dollars by the end of 2021. However, the debt increased again in 2022, ending the year above 12,000 million US dollars. This pattern suggests that the company initially reduced its leverage but later reversed this trend within the last recorded quarters.
- Total Assets
- Total assets remained relatively stable during 2019 and the first half of 2020, fluctuating around 18,000 to 19,000 million US dollars. Starting from mid-2020, the asset base showed a steady increase, surpassing 20,000 million US dollars by mid-2021 and continuing to grow throughout 2022, ultimately nearing 24,000 million US dollars at the end of the period. This growth indicates an expansion in asset holdings, potentially reflecting investments or acquisitions made by the company.
- Debt to Assets Ratio (Including Operating Lease Liability)
- The debt to assets ratio exhibited a downward trend over the period. It started at 0.65 in early 2019 and steadily decreased, reaching approximately 0.50 by the end of 2022. This decline implies an improvement in the company's financial leverage ratio, suggesting better asset coverage for its obligations despite the uptick in total debt towards the end of the period. The lower ratio indicates enhanced solvency and possibly a stronger balance sheet position.
In summary, the company experienced a reduction in its relative leverage position over the majority of the period, supported by an increase in total assets. The temporary increase in debt during 2022, while notable, did not reverse the long-term trend of improved debt coverage by assets. This overall trend may reflect strategic financial management aimed at strengthening the capital structure and supporting growth initiatives.
Financial Leverage
United Rentals Inc., financial leverage calculation (quarterly data)
| 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Total assets | |||||||||||||||||||||
| Stockholders’ equity | |||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||
| Financial leverage1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||
Based on: 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2022 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several important trends regarding the company's financial position and capital structure over the given period.
- Total assets
- Total assets showed a general upward trend with some fluctuations. Starting at $18.6 billion in March 2019, assets slightly increased to nearly $19.5 billion by September 2019 but decreased marginally towards the end of 2019 and early 2020, reaching approximately $17.9 billion in the middle of 2020. From that point, assets began to steadily climb, exceeding $20 billion by the end of 2021 and reaching a peak of about $24.2 billion by December 2022. This recent substantial increase suggests significant growth or acquisition activity in the latter periods.
- Stockholders’ equity
- Stockholders’ equity consistently increased throughout the entire timeline. From $3.4 billion in March 2019, equity advanced steadily to about $4.5 billion by late 2020, and continued rising, reaching over $7 billion by the end of 2022. This sustained growth in equity indicates strengthening of the company's net worth and possibly retained earnings accumulation or equity financing during this timeframe.
- Financial leverage (ratio)
- The financial leverage ratio exhibited a pronounced decline from 5.51 in early 2019 to a low near 3.3 by late 2021. This indicates a reduction in leverage, meaning the company decreased its reliance on debt relative to equity over this period. However, starting around 2022, the ratio stabilized around the mid-3 range, with minor fluctuations but no significant upward or downward trend. This suggests the company has maintained a more conservative capital structure after the initial deleveraging phase.
In summary, the company expanded its asset base substantially by the end of the observed period while concurrently increasing shareholders’ equity consistently. The declining financial leverage ratio until 2021 reflects a deliberate effort to reduce risk exposure through lower debt dependence. The stabilization of leverage in recent periods indicates a balanced approach to financing growth with a mix of debt and equity moving forward.
Interest Coverage
United Rentals Inc., interest coverage calculation (quarterly data)
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Net income | |||||||||||||||||||||
| Add: Income tax expense | |||||||||||||||||||||
| Add: Interest expense, net | |||||||||||||||||||||
| Earnings before interest and tax (EBIT) | |||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||
| Interest coverage1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||
Based on: 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2022 Calculation
Interest coverage
= (EBITQ4 2022
+ EBITQ3 2022
+ EBITQ2 2022
+ EBITQ1 2022)
÷ (Interest expenseQ4 2022
+ Interest expenseQ3 2022
+ Interest expenseQ2 2022
+ Interest expenseQ1 2022)
= ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- EBIT Trend Analysis
- The earnings before interest and tax (EBIT) demonstrate a generally positive upward trajectory over the observed periods. Initially, EBIT experienced fluctuations in 2019 with a low of 371 million USD in Q1 and a peak of 657 million USD in Q3. In 2020, EBIT showed variability, dropping notably in Q1 and Q2 to 362 million and 381 million USD respectively, likely reflecting adverse conditions during that time. From Q3 2020 onwards, the EBIT steadily increased, reaching a peak of 1,027 million USD in Q4 2022, indicating significant operational improvement and enhanced profitability toward the end of the period.
- Interest Expense Trend Analysis
- Interest expense exhibits variation without a clear pattern of consistent increase or decrease. Values peaked at 278 million USD in Q3 2020, which stands out as an anomaly relative to the rest of the data, possibly suggesting a one-time event or re-financing activity. Aside from this spike, interest expense remained relatively stable, oscillating around a range of approximately 90 to 150 million USD. By the end of 2022, interest expense hovered near 130 million USD, showing no substantial long-term increase despite rising EBIT.
- Interest Coverage Ratio Analysis
- The interest coverage ratio, which measures the company's ability to meet interest obligations from EBIT, declined gradually from early 2019 through most of 2020, bottoming near 2.66 in Q3 2020. This decline coincided with lower EBIT and the spike in interest expense, reflecting tighter financial conditions. However, from late 2020 forward, this ratio improved significantly, reaching levels above 7.2 by the end of 2022. The sustained increase in this ratio indicates enhanced earnings capacity relative to interest costs, resulting in stronger financial flexibility and reduced risk related to interest payments over time.
- Overall Financial Insights
- The analysis of operational earnings and interest expenses suggests the company managed to overcome challenges in early 2020, potentially linked to broader economic conditions. Despite a temporary increase in interest expense and reduced interest coverage ratio during this period, the company improved EBIT substantially and restored financial strength as demonstrated by the rising interest coverage ratio in the subsequent periods. The ability to grow EBIT while maintaining relatively stable interest expense levels contributes to an increasingly favorable financial position.