Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
United Rentals Inc., liquidity ratios
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.11 | 0.83 | 1.07 | 0.84 | 0.83 | |
| Quick ratio | 0.86 | 0.70 | 0.80 | 0.72 | 0.75 | |
| Cash ratio | 0.04 | 0.06 | 0.11 | 0.02 | 0.02 |
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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | United Rentals Inc. current ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | United Rentals Inc. quick ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | United Rentals Inc. cash ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
Current Ratio
United Rentals Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 2,723) | 2,151) | 2,017) | 1,842) | 1,761) | |
| Current liabilities | 2,445) | 2,603) | 1,890) | 2,198) | 2,116) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.11 | 0.83 | 1.07 | 0.84 | 0.83 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Boeing Co. | 1.22 | 1.33 | 1.39 | 1.05 | — | |
| Caterpillar Inc. | 1.39 | 1.46 | 1.53 | 1.47 | — | |
| Eaton Corp. plc | 1.38 | 1.04 | 1.56 | 1.70 | — | |
| GE Aerospace | 1.16 | 1.28 | 1.58 | 1.16 | — | |
| Honeywell International Inc. | 1.25 | 1.30 | 1.47 | 1.34 | — | |
| Lockheed Martin Corp. | 1.32 | 1.42 | 1.39 | 1.22 | — | |
| RTX Corp. | 1.09 | 1.19 | 1.21 | 1.08 | — | |
| Current Ratio, Sector | ||||||
| Capital Goods | 1.22 | 1.31 | 1.43 | 1.17 | — | |
| Current Ratio, Industry | ||||||
| Industrials | 1.21 | 1.30 | 1.42 | 1.19 | — | |
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).
1 2022 Calculation
Current ratio = Current assets ÷ Current liabilities
= 2,723 ÷ 2,445 = 1.11
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | United Rentals Inc. current ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Quick Ratio
United Rentals Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 106) | 144) | 202) | 52) | 43) | |
| Accounts receivable, net | 2,004) | 1,677) | 1,315) | 1,530) | 1,545) | |
| Total quick assets | 2,110) | 1,821) | 1,517) | 1,582) | 1,588) | |
| Current liabilities | 2,445) | 2,603) | 1,890) | 2,198) | 2,116) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.86 | 0.70 | 0.80 | 0.72 | 0.75 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Boeing Co. | 0.32 | 0.34 | 0.41 | 0.23 | — | |
| Caterpillar Inc. | 0.79 | 0.89 | 1.02 | 0.98 | — | |
| Eaton Corp. plc | 0.73 | 0.54 | 0.68 | 0.78 | — | |
| GE Aerospace | 0.81 | 0.93 | 1.27 | 0.86 | — | |
| Honeywell International Inc. | 0.88 | 0.94 | 1.15 | 0.99 | — | |
| Lockheed Martin Corp. | 1.09 | 1.15 | 1.05 | 0.93 | — | |
| RTX Corp. | 0.69 | 0.81 | 0.78 | 0.73 | — | |
| Quick Ratio, Sector | ||||||
| Capital Goods | 0.64 | 0.71 | 0.83 | 0.64 | — | |
| Quick Ratio, Industry | ||||||
| Industrials | 0.70 | 0.78 | 0.87 | 0.71 | — | |
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).
1 2022 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 2,110 ÷ 2,445 = 0.86
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | United Rentals Inc. quick ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Cash Ratio
United Rentals Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 106) | 144) | 202) | 52) | 43) | |
| Total cash assets | 106) | 144) | 202) | 52) | 43) | |
| Current liabilities | 2,445) | 2,603) | 1,890) | 2,198) | 2,116) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.04 | 0.06 | 0.11 | 0.02 | 0.02 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Boeing Co. | 0.19 | 0.20 | 0.29 | 0.10 | — | |
| Caterpillar Inc. | 0.22 | 0.31 | 0.36 | 0.31 | — | |
| Eaton Corp. plc | 0.09 | 0.08 | 0.19 | 0.12 | — | |
| GE Aerospace | 0.44 | 0.54 | 0.78 | 0.60 | — | |
| Honeywell International Inc. | 0.51 | 0.59 | 0.79 | 0.58 | — | |
| Lockheed Martin Corp. | 0.16 | 0.26 | 0.23 | 0.11 | — | |
| RTX Corp. | 0.16 | 0.22 | 0.25 | 0.21 | — | |
| Cash Ratio, Sector | ||||||
| Capital Goods | 0.26 | 0.32 | 0.44 | 0.31 | — | |
| Cash Ratio, Industry | ||||||
| Industrials | 0.29 | 0.35 | 0.45 | 0.34 | — | |
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).
1 2022 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 106 ÷ 2,445 = 0.04
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | United Rentals Inc. cash ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |