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United Rentals Financial Strength

: 4 (As of Jun. 2022)
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United Rentals has the Financial Strength Rank of 4.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

United Rentals's Interest Coverage for the quarter that ended in Jun. 2022 was 6.34. United Rentals's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.94. As of today, United Rentals's Altman Z-Score is 2.47.


Competitive Comparison

For the Rental & Leasing Services subindustry, United Rentals's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution

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

* The bar in red indicates where United Rentals's Financial Strength falls into.



United Rentals Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

United Rentals's Interest Expense for the months ended in Jun. 2022 was $-113 Mil. Its Operating Income for the months ended in Jun. 2022 was $716 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $10,394 Mil.

United Rentals's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*716/-113
=6.34

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

United Rentals's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(60 + 10394) / 11084
=0.94

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

United Rentals has a Z-score of 2.47, indicating it is in Grey Zones. This implies that United Rentals is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.47 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* 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.


United Rentals  (NYSE:URI) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

United Rentals has the Financial Strength Rank of 4.


United Rentals Financial Strength Related Terms

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


United Rentals Business Description

United Rentals logo
Address
100 First Stamford Place, Suite 700, Stamford, CT, USA, 06902
United Rentals Inc is an equipment rental company and principally operates in the United States and Canada, where it commands approximately 15% 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 nearly $16 billion) now includes a range of specialty equipment and other items that can be rented for an indefinitely long time periods.
Executives
De Shon Larry D director 6 SYLVAN WAY PARSIPPANY NJ 07054
Mcdonnell Paul I. officer: EVP, Sales & Specialty Ops C/O UNITED RENTALS, INC. 100 FIRST STAMFORD PLACE, SUITE 700 STAMFORD CT 06902
Limoges Andrew B. officer: VP, Controller C/O UNITED RENTALS, INC. 100 FIRST STAMFORD PLACE, SUITE 700 STAMFORD CT 06902
Jones Kim Harris director THREE LAKES DRIVE NORTHFIELD IL 60093
Kelly Terri L. director C/O UNITED RENTALS, INC. 100 FIRST STAMFORD PLACE, SUITE 700 STAMFORD CT 06902
Bruno Marc A director C/O UNITED RENTALS, INC. 100 FIRST STAMFORD PLACE, SUITE 700 STAMFORD CT 06902
Martore Gracia C director C/O OMNICOM GROUP INC. 437 MADISON AVENUE NEW YORK NY 10022
Singh Shiv director C/O UNITED RENTALS, INC. 100 FIRST STAMFORD PLACE, SUITE 700 STAMFORD CT 06902
Fenton Jeffrey J officer: Sr. V.P., Business Development C/O CERBERUS CAPITAL MANAGEMENT, L.P. 299 PARK AVENUE, 22ND FLOOR NEW YORK NY 10171
Pintoff Craig Adam officer: Sr. V.P,, Gen. Counsel & H.R. C/O UNITED RENTALS, INC 100 FIRST STAMFORD PL, STE 700 STAMFORD CT 06902
Graziano Jessica officer: Vice President, Controller C/O UNITED RENTALS, INC 100 FIRST STAMFORD PL STAMFORD CT 06902
Ozanne James director C/O NMI 2100 POWELL STREET, 12TH FLOOR EMERYVILLE CA 94608
Roof Donald C director P O BOX 554 MILWAUKEE WI 53201
Leroy Pierre E director DEERE & COMPANY ONE JOHN DEERE PLACE MOLINE IL 61265
Asplund Dale A officer: Senior V.P.-Business Services C/O UNITED RENTALS, INC. 100 FIRST STAMFORD PL STAMFORD CT 06902

United Rentals Headlines

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