United Rentals (United Rentals) Interest Coverage : 5.33 (As of Mar. 2024)

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What is United Rentals Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. United Rentals's Operating Income for the three months ended in Mar. 2024 was $853 Mil. United Rentals's Interest Expense for the three months ended in Mar. 2024 was $-160 Mil. United Rentals's interest coverage for the quarter that ended in Mar. 2024 was 5.33. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for United Rentals's Interest Coverage or its related term are showing as below:

URI' s Interest Coverage Range Over the Past 10 Years
Min: 2.52 Med: 3.41 Max: 7.26
Current: 6.07

URI's Interest Coverage is ranked worse than
64.51% of 789 companies
in the Business Services industry
Industry Median: 13.39 vs URI: 6.07

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

United Rentals Interest Coverage Historical Data

The historical data trend for United Rentals's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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United Rentals Interest Coverage Chart

United Rentals Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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3.35

2.72

5.38

7.26

6.07

United Rentals Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial															4.94	5.86	6.77	6.63	5.33

Competitive Comparison of United Rentals's Interest Coverage

For the Rental & Leasing Services subindustry, United Rentals's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

United Rentals's Interest Coverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, United Rentals's Interest Coverage distribution charts can be found below:

* The bar in red indicates where United Rentals's Interest Coverage falls into.

United Rentals Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

United Rentals's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, United Rentals's Interest Expense was $-635 Mil. Its Operating Income was $3,855 Mil. And its Long-Term Debt & Capital Lease Obligation was $10,948 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	3855	/	-635
	=	6.07

United Rentals's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, United Rentals's Interest Expense was $-160 Mil. Its Operating Income was $853 Mil. And its Long-Term Debt & Capital Lease Obligation was $12,284 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	853	/	-160
	=	5.33

The higher the ratio, the stronger the company's Financial Strength is.

United Rentals (NYSE:URI) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

United Rentals Interest Coverage Related Terms

Thank you for viewing the detailed overview of United Rentals's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

United Rentals (United Rentals) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » United Rentals Inc (NYSE:URI) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

UR3:Germany U1RI34:Brazil

Address

100 First Stamford Place, Suite 700, Stamford, CT, USA, 06902

Website

https://www.unitedrentals.com

United Rentals is the world's largest equipment rental company. It principally operates in the United States and Canada, where it commands approximately 17% share in a highly fragmented market. It serves three end markets: general industrial, commercial construction, and residential construction. Like its peers, United Rentals historically has provided its customers with equipment that was intermittently used, such as aerial equipment and portable generators. As the company has grown organically and through hundreds of acquisitions since it went public in 1997, its catalog (fleet size of $21 billion) now includes a range of specialty equipment and other items that can be rented for indefinitely long periods.

Executives

Terri L. Kelly	director	C/O UNITED RENTALS, INC., 100 FIRST STAMFORD PLACE, SUITE 700, STAMFORD CT 06902
Michael D Durand	officer: EVP, Chief Operating Officer	C/O UNITED RENTALS, INC., 100 FIRST STAMFORD PLACE, SUITE 700, STAMFORD CT 06902
Dale A Asplund	officer: Senior V.P.-Business Services	C/O BRIGHTVIEW HOLDINGS, INC., 980 JOLLY ROAD, SUITE 300, BLUE BELL PA 19422
Anthony S. Leopold	officer: SVP	C/O UNITED RENTALS, INC., 100 FIRST STAMFORD PLACE, SUITE 700, STAMFORD CT 06902
Joli L. Gross	officer: SVP, General Counsel	TWO AMERICAN LANE, GREENWICH CT 06831
William E. Grace	officer: VP, Interim CFO	C/O UNITED RENTALS, INC., 100 FIRST STAMFORD PLACE, SUITE 700, STAMFORD CT 06902
Matthew John Flannery	officer: Sr. Vice President- Operations	C/O UNITED RENTALS, INC, 100 FIRST STAMFORD PL, STAMFORD CT 06902
Craig Adam Pintoff	officer: Sr. V.P,, Gen. Counsel & H.R.	C/O UNITED RENTALS, INC, 100 FIRST STAMFORD PL, STE 700, STAMFORD CT 06902
Andrew B. Limoges	officer: VP, Controller	C/O UNITED RENTALS, INC., 100 FIRST STAMFORD PLACE, SUITE 700, STAMFORD CT 06902
Jose B Alvarez	director	STOP & SHOP, 1385 HANCOCK STREET, QUINCY MA 02169
Francisco J Lopez-balboa	director	3280 PEACHTREE ROAD, N.W., ATLANTA GA 30305
Jessica Graziano	officer: Vice President, Controller	C/O UNITED RENTALS, INC, 100 FIRST STAMFORD PL, STAMFORD CT 06902
Shiv Singh	director	C/O UNITED RENTALS, INC., 100 FIRST STAMFORD PLACE, SUITE 700, STAMFORD CT 06902
De Shon Larry D	director	6 SYLVAN WAY, PARSIPPANY NJ 07054
Filippo Passerini	director	C/O UNITED RENTALS, INC, 100 FIRST STAMFORD PL, STAMFORD CT 06902