Analysis of Debt
Total Debt (Carrying Amount)
United Rentals Inc., balance sheet: debt
US$ in millions
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 total debt carrying amount exhibits a V-shaped trajectory over the five-year period, characterized by a period of deleveraging followed by a significant increase in obligations. Total debt declined from $11,747 million in 2018 to a low of $9,682 million in 2020, remained nearly flat through 2021, and subsequently rose to $11,370 million by the end of 2022.
- Long-term Debt Trends
- Long-term debt, excluding current maturities, represents the dominant portion of the total debt profile. A consistent downward trend was observed from 2018 through 2021, with the balance decreasing from $10,844 million to $8,779 million. This trend reversed sharply in 2022, with long-term debt increasing to $11,209 million, suggesting a significant capital raise or a strategic refinancing of the debt portfolio.
- Short-term Debt and Current Maturities
- Short-term obligations fluctuated between $704 million and $997 million from 2018 to 2021. A notable contraction occurred in 2022, where short-term debt fell to $161 million, the lowest level recorded during the analyzed period. This decline indicates a substantial reduction in immediate repayment obligations.
- Debt Composition and Maturity Profile
- The relationship between short-term and long-term debt shifted markedly by the end of 2022. While total debt increased during the final year, the concurrent drop in short-term liabilities suggests a strategic shift toward extending the company's maturity profile. Consequently, the proportion of total debt held as long-term obligations increased, reducing short-term liquidity risk associated with debt maturation.
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Total Debt (Fair Value)
| Dec 31, 2022 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Repurchase facility expiring 2023 | 100) |
| Accounts receivable securitization facility expiring 2024 | 959) |
| Term loan facility expiring 2025 | 953) |
| $4.25 billion ABL facility expiring 2027 | 1,523) |
| Senior notes | 7,143) |
| Finance leases | 123) |
| Total debt (fair value) | 10,801) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.95 |
Based on: 10-K (reporting date: 2022-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt: 4.98%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 5.40% | 100) | 5) | |
| 5.30% | 959) | 51) | |
| 6.10% | 953) | 58) | |
| 5.40% | 1,523) | 82) | |
| 5.50% | 498) | 27) | |
| 3.88% | 744) | 29) | |
| 4.88% | 1,663) | 81) | |
| 6.00% | 1,486) | 89) | |
| 5.25% | 744) | 39) | |
| 4.00% | 743) | 30) | |
| 3.88% | 1,090) | 42) | |
| 3.75% | 744) | 28) | |
| 3.50% | 123) | 4) | |
| Total | 11,370) | 566) | |
| 4.98% | |||
Based on: 10-K (reporting date: 2022-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 566 ÷ 11,370 = 4.98%