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 annual reported debt data show varying trends over the five-year period ending in 2022. An examination of the short-term debt and current maturities of long-term debt reveals fluctuations with a peak in 2019 at 997 million US dollars, followed by a decline in 2020 to 704 million. The amount increased again in 2021 to 906 million before sharply falling to 161 million in 2022.
Long-term debt, excluding current maturities, demonstrates a different pattern. It decreased consistently from 10,844 million US dollars in 2018 to a low of 8,779 million in 2021. However, this trend reversed in 2022, with long-term debt rising to 11,209 million, exceeding the initial 2018 level.
Total debt, representing the carrying amount, also reflects these directional shifts. Initially, total debt decreased from 11,747 million in 2018 to 9,682 million in 2020, remaining relatively stable in 2021 at 9,685 million. In 2022, total debt increased sharply to 11,370 million, approaching the 2018 level but slightly lower.
- Short-term debt and current maturities of long-term debt
- Shows variability with a notable decline in the final year, reaching its lowest level in the period under review.
- Long-term debt, excluding current maturities
- Declined steadily over four years but surged significantly in 2022.
- Total debt (carrying amount)
- Mirrors the combined effect of the other two categories, displaying an initial decline through 2021 followed by a rebound in 2022.
Overall, the data indicate a general reduction in debt levels from 2018 through 2021, succeeded by a considerable increase across all categories in 2022. The sharp reduction in short-term debt in 2022 contrasts with the rise in long-term debt, suggesting a possible refinancing or restructuring effort to shift obligations away from near-term maturities. The total debt trajectory aligns with these observations, illustrating strategic adjustments in the company's debt profile at the end of the latest period.
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%