Uber Technologies Inc (UBER)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover	—	41.87	10.49	16.33	154.54
Receivables turnover	9.05	9.14	5.83	7.25	7.92
Payables turnover	38.03	39.11	20.03	53.29	56.25
Working capital turnover	20.23	80.50	—	3.69	1.57

Activity ratios provide insight into how efficiently a company is managing its assets and liabilities. Let's analyze Uber Technologies Inc's activity ratios over the past five years:

1. Receivables Turnover:
- The receivables turnover ratio measures how many times a company's receivables are converted into cash during a period.
- Uber's receivables turnover has been relatively stable over the years, ranging from 5.83 to 9.14.
- A higher turnover indicates that Uber is collecting its receivables more quickly, which is positive for cash flow management and liquidity.

2. Payables Turnover:
- The payables turnover ratio measures how efficiently a company is managing its payables by paying its suppliers.
- Uber's payables turnover has also been consistent, with values ranging from 10.87 to 28.43.
- A higher payables turnover indicates that Uber is taking longer to pay its suppliers, which can be a sign of good negotiation terms or potential liquidity issues.

3. Working Capital Turnover:
- The working capital turnover ratio shows how efficiently a company is utilizing its working capital to generate sales.
- Uber's working capital turnover has been variable, with significant fluctuations over the years.
- A higher working capital turnover suggests that Uber is effectively using its resources to generate revenue, although the sharp changes could indicate inconsistent management of working capital.

In summary, Uber Technologies Inc's activity ratios demonstrate a mix of efficiency and potential areas for improvement in managing its receivables, payables, and working capital. Evaluating these ratios alongside other financial metrics can provide a more comprehensive view of the company's overall operational performance.

Average number of days

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	—	8.72	34.81	22.36	2.36
Days of sales outstanding (DSO)	days	40.35	39.95	62.57	50.36	46.10
Number of days of payables	days	9.60	9.33	18.22	6.85	6.49

Days of inventory on hand (DOH) for Uber Technologies Inc are not provided in the table. The Days of Sales Outstanding (DSO) have shown a decreasing trend from 62.57 days in 2021 to 40.35 days in 2023, which indicates that the company is collecting its accounts receivable more efficiently over the years.

On the other hand, the Number of Days of Payables has fluctuated, with an increase from 13.77 days in 2019 to 33.57 days in 2021 before dropping to 12.84 days in 2023. This suggests that Uber has been managing its payables effectively in recent years.

Overall, the decreasing DSO and fluctuating but ultimately declining days of payables indicate improvements in Uber's working capital management and liquidity position, leading to a more efficient use of resources and potentially better financial health.

Long-term

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Fixed asset turnover	17.98	15.31	9.42	6.14	7.51
Total asset turnover	0.96	0.99	0.45	0.33	0.41

Long-term activity ratios provide insights into how efficiently a company utilizes its assets to generate revenue. In the case of Uber Technologies Inc, the fixed asset turnover ratio has shown a consistent increase over the past five years, indicating that the company has been more effective in generating sales revenue from its fixed assets. This improvement suggests that Uber is making better use of its long-term assets such as vehicles and technology infrastructure to drive its business operations and increase productivity.

On the other hand, the total asset turnover ratio for Uber fluctuated over the same period, with a slight decline in 2023 compared to the previous year. This ratio measures how efficiently the company is using all its assets, including both fixed and current assets, to generate sales. The decreasing trend in the total asset turnover ratio could imply that Uber may not be effectively leveraging its total asset base to drive revenue growth.

Overall, while Uber has shown improvement in its fixed asset turnover ratio, the fluctuating trend in the total asset turnover ratio indicates a need for the company to further optimize its total asset utilization to boost revenue generation and enhance operational efficiency in the long term.