Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
United Rentals Inc., solvency ratios
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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | United Rentals Inc. debt to equity ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | United Rentals Inc. debt to equity ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | United Rentals Inc. debt to capital ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | United Rentals Inc. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | United Rentals Inc. debt to assets ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | United Rentals Inc. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | United Rentals Inc. financial leverage ratio decreased from 2020 to 2021 but then slightly increased from 2021 to 2022. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | United Rentals Inc. interest coverage ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | United Rentals Inc. fixed charge coverage ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Equity
United Rentals Inc., debt to equity 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) | ||||||
| Short-term debt and current maturities of long-term debt | 161) | 906) | 704) | 997) | 903) | |
| Long-term debt, excluding current maturities | 11,209) | 8,779) | 8,978) | 10,431) | 10,844) | |
| Total debt | 11,370) | 9,685) | 9,682) | 11,428) | 11,747) | |
| Stockholders’ equity | 7,062) | 5,991) | 4,545) | 3,830) | 3,403) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 1.61 | 1.62 | 2.13 | 2.98 | 3.45 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 2.33 | 2.29 | 2.42 | 2.58 | — | |
| Eaton Corp. plc | 0.51 | 0.52 | 0.54 | 0.52 | — | |
| GE Aerospace | 0.89 | 0.87 | 2.11 | 3.21 | — | |
| Honeywell International Inc. | 1.17 | 1.06 | 1.28 | 0.87 | — | |
| Lockheed Martin Corp. | 1.68 | 1.07 | 2.02 | 4.05 | — | |
| RTX Corp. | 0.44 | 0.43 | 0.44 | 1.04 | — | |
| Debt to Equity, Sector | ||||||
| Capital Goods | 1.33 | 1.26 | 1.75 | 2.08 | — | |
| Debt to Equity, Industry | ||||||
| Industrials | 1.32 | 1.25 | 1.73 | 1.86 | — | |
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
Debt to equity = Total debt ÷ Stockholders’ equity
= 11,370 ÷ 7,062 = 1.61
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | United Rentals Inc. debt to equity ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Equity (including Operating Lease Liability)
United Rentals Inc., debt to equity (including operating lease liability) 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) | ||||||
| Short-term debt and current maturities of long-term debt | 161) | 906) | 704) | 997) | 903) | |
| Long-term debt, excluding current maturities | 11,209) | 8,779) | 8,978) | 10,431) | 10,844) | |
| Total debt | 11,370) | 9,685) | 9,682) | 11,428) | 11,747) | |
| Current operating lease liability | 211) | 202) | 178) | 178) | —) | |
| Long-term operating lease liabilities | 642) | 621) | 549) | 533) | —) | |
| Total debt (including operating lease liability) | 12,223) | 10,508) | 10,409) | 12,139) | 11,747) | |
| Stockholders’ equity | 7,062) | 5,991) | 4,545) | 3,830) | 3,403) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 1.73 | 1.75 | 2.29 | 3.17 | 3.45 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 2.37 | 2.33 | 2.46 | 2.62 | — | |
| Eaton Corp. plc | 0.54 | 0.55 | 0.57 | 0.55 | — | |
| GE Aerospace | 0.96 | 0.94 | 2.20 | 3.32 | — | |
| Honeywell International Inc. | 1.23 | 1.11 | 1.32 | 0.90 | — | |
| Lockheed Martin Corp. | 1.81 | 1.19 | 2.21 | 4.40 | — | |
| RTX Corp. | 0.47 | 0.46 | 0.47 | 1.11 | — | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Capital Goods | 1.39 | 1.32 | 1.81 | 2.17 | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Industrials | 1.47 | 1.39 | 1.89 | 1.96 | — | |
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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 12,223 ÷ 7,062 = 1.73
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | United Rentals Inc. debt to equity ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Capital
United Rentals Inc., debt to capital 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) | ||||||
| Short-term debt and current maturities of long-term debt | 161) | 906) | 704) | 997) | 903) | |
| Long-term debt, excluding current maturities | 11,209) | 8,779) | 8,978) | 10,431) | 10,844) | |
| Total debt | 11,370) | 9,685) | 9,682) | 11,428) | 11,747) | |
| Stockholders’ equity | 7,062) | 5,991) | 4,545) | 3,830) | 3,403) | |
| Total capital | 18,432) | 15,676) | 14,227) | 15,258) | 15,150) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.62 | 0.62 | 0.68 | 0.75 | 0.78 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Boeing Co. | 1.39 | 1.35 | 1.40 | 1.46 | — | |
| Caterpillar Inc. | 0.70 | 0.70 | 0.71 | 0.72 | — | |
| Eaton Corp. plc | 0.34 | 0.34 | 0.35 | 0.34 | — | |
| GE Aerospace | 0.47 | 0.47 | 0.68 | 0.76 | — | |
| Honeywell International Inc. | 0.54 | 0.51 | 0.56 | 0.46 | — | |
| Lockheed Martin Corp. | 0.63 | 0.52 | 0.67 | 0.80 | — | |
| RTX Corp. | 0.31 | 0.30 | 0.31 | 0.51 | — | |
| Debt to Capital, Sector | ||||||
| Capital Goods | 0.57 | 0.56 | 0.64 | 0.68 | — | |
| Debt to Capital, Industry | ||||||
| Industrials | 0.57 | 0.56 | 0.63 | 0.65 | — | |
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
Debt to capital = Total debt ÷ Total capital
= 11,370 ÷ 18,432 = 0.62
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | United Rentals Inc. debt to capital ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Capital (including Operating Lease Liability)
United Rentals Inc., debt to capital (including operating lease liability) 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) | ||||||
| Short-term debt and current maturities of long-term debt | 161) | 906) | 704) | 997) | 903) | |
| Long-term debt, excluding current maturities | 11,209) | 8,779) | 8,978) | 10,431) | 10,844) | |
| Total debt | 11,370) | 9,685) | 9,682) | 11,428) | 11,747) | |
| Current operating lease liability | 211) | 202) | 178) | 178) | —) | |
| Long-term operating lease liabilities | 642) | 621) | 549) | 533) | —) | |
| Total debt (including operating lease liability) | 12,223) | 10,508) | 10,409) | 12,139) | 11,747) | |
| Stockholders’ equity | 7,062) | 5,991) | 4,545) | 3,830) | 3,403) | |
| Total capital (including operating lease liability) | 19,285) | 16,499) | 14,954) | 15,969) | 15,150) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.63 | 0.64 | 0.70 | 0.76 | 0.78 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Boeing Co. | 1.37 | 1.34 | 1.39 | 1.43 | — | |
| Caterpillar Inc. | 0.70 | 0.70 | 0.71 | 0.72 | — | |
| Eaton Corp. plc | 0.35 | 0.36 | 0.36 | 0.35 | — | |
| GE Aerospace | 0.49 | 0.49 | 0.69 | 0.77 | — | |
| Honeywell International Inc. | 0.55 | 0.53 | 0.57 | 0.47 | — | |
| Lockheed Martin Corp. | 0.64 | 0.54 | 0.69 | 0.81 | — | |
| RTX Corp. | 0.32 | 0.31 | 0.32 | 0.53 | — | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Capital Goods | 0.58 | 0.57 | 0.64 | 0.68 | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Industrials | 0.60 | 0.58 | 0.65 | 0.66 | — | |
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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 12,223 ÷ 19,285 = 0.63
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | United Rentals Inc. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Assets
United Rentals Inc., debt to assets 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) | ||||||
| Short-term debt and current maturities of long-term debt | 161) | 906) | 704) | 997) | 903) | |
| Long-term debt, excluding current maturities | 11,209) | 8,779) | 8,978) | 10,431) | 10,844) | |
| Total debt | 11,370) | 9,685) | 9,682) | 11,428) | 11,747) | |
| Total assets | 24,183) | 20,292) | 17,868) | 18,970) | 18,133) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.47 | 0.48 | 0.54 | 0.60 | 0.65 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Boeing Co. | 0.42 | 0.42 | 0.42 | 0.20 | — | |
| Caterpillar Inc. | 0.45 | 0.46 | 0.47 | 0.48 | — | |
| Eaton Corp. plc | 0.25 | 0.25 | 0.25 | 0.25 | — | |
| GE Aerospace | 0.17 | 0.18 | 0.30 | 0.34 | — | |
| Honeywell International Inc. | 0.31 | 0.30 | 0.35 | 0.27 | — | |
| Lockheed Martin Corp. | 0.29 | 0.23 | 0.24 | 0.27 | — | |
| RTX Corp. | 0.20 | 0.20 | 0.20 | 0.31 | — | |
| Debt to Assets, Sector | ||||||
| Capital Goods | 0.28 | 0.28 | 0.32 | 0.31 | — | |
| Debt to Assets, Industry | ||||||
| Industrials | 0.29 | 0.29 | 0.32 | 0.32 | — | |
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
Debt to assets = Total debt ÷ Total assets
= 11,370 ÷ 24,183 = 0.47
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | United Rentals Inc. debt to assets ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Assets (including Operating Lease Liability)
United Rentals Inc., debt to assets (including operating lease liability) 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) | ||||||
| Short-term debt and current maturities of long-term debt | 161) | 906) | 704) | 997) | 903) | |
| Long-term debt, excluding current maturities | 11,209) | 8,779) | 8,978) | 10,431) | 10,844) | |
| Total debt | 11,370) | 9,685) | 9,682) | 11,428) | 11,747) | |
| Current operating lease liability | 211) | 202) | 178) | 178) | —) | |
| Long-term operating lease liabilities | 642) | 621) | 549) | 533) | —) | |
| Total debt (including operating lease liability) | 12,223) | 10,508) | 10,409) | 12,139) | 11,747) | |
| Total assets | 24,183) | 20,292) | 17,868) | 18,970) | 18,133) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.51 | 0.52 | 0.58 | 0.64 | 0.65 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Boeing Co. | 0.43 | 0.43 | 0.43 | 0.21 | — | |
| Caterpillar Inc. | 0.46 | 0.46 | 0.48 | 0.49 | — | |
| Eaton Corp. plc | 0.26 | 0.27 | 0.27 | 0.27 | — | |
| GE Aerospace | 0.19 | 0.19 | 0.31 | 0.35 | — | |
| Honeywell International Inc. | 0.33 | 0.32 | 0.36 | 0.28 | — | |
| Lockheed Martin Corp. | 0.32 | 0.26 | 0.26 | 0.29 | — | |
| RTX Corp. | 0.21 | 0.21 | 0.21 | 0.33 | — | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Capital Goods | 0.30 | 0.29 | 0.33 | 0.33 | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Industrials | 0.33 | 0.32 | 0.35 | 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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 12,223 ÷ 24,183 = 0.51
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | United Rentals Inc. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
Financial Leverage
United Rentals Inc., financial leverage 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) | ||||||
| Total assets | 24,183) | 20,292) | 17,868) | 18,970) | 18,133) | |
| Stockholders’ equity | 7,062) | 5,991) | 4,545) | 3,830) | 3,403) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 3.42 | 3.39 | 3.93 | 4.95 | 5.33 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 5.16 | 5.02 | 5.11 | 5.38 | — | |
| Eaton Corp. plc | 2.06 | 2.07 | 2.13 | 2.04 | — | |
| GE Aerospace | 5.16 | 4.93 | 7.13 | 9.40 | — | |
| Honeywell International Inc. | 3.73 | 3.47 | 3.68 | 3.17 | — | |
| Lockheed Martin Corp. | 5.71 | 4.64 | 8.43 | 15.20 | — | |
| RTX Corp. | 2.19 | 2.21 | 2.25 | 3.34 | — | |
| Financial Leverage, Sector | ||||||
| Capital Goods | 4.71 | 4.55 | 5.54 | 6.65 | — | |
| Financial Leverage, Industry | ||||||
| Industrials | 4.49 | 4.33 | 5.35 | 5.76 | — | |
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
Financial leverage = Total assets ÷ Stockholders’ equity
= 24,183 ÷ 7,062 = 3.42
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | United Rentals Inc. financial leverage ratio decreased from 2020 to 2021 but then slightly increased from 2021 to 2022. |
Interest Coverage
United Rentals Inc., interest coverage 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) | ||||||
| Net income | 2,105) | 1,386) | 890) | 1,174) | 1,096) | |
| Add: Income tax expense | 697) | 460) | 249) | 340) | 380) | |
| Add: Interest expense, net | 445) | 424) | 669) | 648) | 481) | |
| Earnings before interest and tax (EBIT) | 3,247) | 2,270) | 1,808) | 2,162) | 1,957) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 7.30 | 5.35 | 2.70 | 3.34 | 4.07 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Boeing Co. | -0.98 | -0.88 | -5.71 | -2.19 | — | |
| Caterpillar Inc. | 20.80 | 17.88 | 8.80 | 19.62 | — | |
| Eaton Corp. plc | 21.22 | 21.11 | 12.72 | 11.98 | — | |
| GE Aerospace | 1.88 | -0.96 | 2.59 | 1.27 | — | |
| Honeywell International Inc. | 16.41 | 22.09 | 17.75 | 22.17 | — | |
| Lockheed Martin Corp. | 11.72 | 14.27 | 14.93 | 12.09 | — | |
| RTX Corp. | 5.64 | 4.71 | -0.65 | 5.65 | — | |
| Interest Coverage, Sector | ||||||
| Capital Goods | 4.84 | 3.98 | 1.99 | 4.85 | — | |
| Interest Coverage, Industry | ||||||
| Industrials | 5.53 | 6.00 | 2.04 | 4.37 | — | |
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
Interest coverage = EBIT ÷ Interest expense
= 3,247 ÷ 445 = 7.30
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | United Rentals Inc. interest coverage ratio improved from 2020 to 2021 and from 2021 to 2022. |
Fixed Charge Coverage
United Rentals Inc., fixed charge coverage 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) | ||||||
| Net income | 2,105) | 1,386) | 890) | 1,174) | 1,096) | |
| Add: Income tax expense | 697) | 460) | 249) | 340) | 380) | |
| Add: Interest expense, net | 445) | 424) | 669) | 648) | 481) | |
| Earnings before interest and tax (EBIT) | 3,247) | 2,270) | 1,808) | 2,162) | 1,957) | |
| Add: Operating lease cost | 494) | 432) | 366) | 370) | 179) | |
| Earnings before fixed charges and tax | 3,741) | 2,702) | 2,174) | 2,532) | 2,136) | |
| Interest expense, net | 445) | 424) | 669) | 648) | 481) | |
| Operating lease cost | 494) | 432) | 366) | 370) | 179) | |
| Fixed charges | 939) | 856) | 1,035) | 1,018) | 660) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 3.98 | 3.16 | 2.10 | 2.49 | 3.24 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Boeing Co. | -0.70 | -0.64 | -4.75 | -1.19 | — | |
| Caterpillar Inc. | 14.92 | 12.73 | 6.58 | 13.01 | — | |
| Eaton Corp. plc | 10.01 | 10.40 | 6.24 | 7.45 | — | |
| GE Aerospace | 1.35 | -0.22 | 1.93 | 1.09 | — | |
| Honeywell International Inc. | 11.00 | 13.67 | 11.49 | 14.06 | — | |
| Lockheed Martin Corp. | 8.44 | 9.95 | 11.12 | 9.12 | — | |
| RTX Corp. | 4.40 | 3.66 | -0.22 | 4.31 | — | |
| Fixed Charge Coverage, Sector | ||||||
| Capital Goods | 3.61 | 3.06 | 1.66 | 3.63 | — | |
| Fixed Charge Coverage, Industry | ||||||
| Industrials | 3.58 | 3.93 | 1.59 | 2.96 | — | |
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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 3,741 ÷ 939 = 3.98
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | United Rentals Inc. fixed charge coverage ratio improved from 2020 to 2021 and from 2021 to 2022. |