Uber Technologies Inc (UBER)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 1.07 | 1.19 | 1.04 | 0.98 | 1.44 |
| Quick ratio | 0.61 | 0.66 | 0.49 | 0.61 | 0.99 |
| Cash ratio | 0.61 | 0.66 | 0.49 | 0.61 | 0.99 |
Uber Technologies Inc's liquidity ratios have shown varying trends over the past five years. The current ratio, which indicates the company's ability to cover its short-term liabilities with its current assets, decreased from 1.44 in 2020 to 0.98 in 2021, but then improved to 1.04 in 2022, 1.19 in 2023, and 1.07 in 2024. This suggests that Uber has generally maintained a sufficient level of current assets to meet its short-term obligations, although there was a dip in 2021.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, declined from 0.99 in 2020 to 0.61 in 2021, and then further to 0.49 in 2022. The ratio increased slightly to 0.66 in 2023 and remained at 0.61 in 2024. This indicates a decreasing ability to cover current liabilities with the most liquid assets, such as cash and receivables, which could raise concerns about Uber's short-term liquidity position, particularly in 2022.
The cash ratio, which measures the company's ability to pay off its current liabilities with cash and cash equivalents only, followed a similar trend as the quick ratio, from 0.99 in 2020 to 0.61 in 2021 and 0.49 in 2022, then improved to 0.66 in 2023 and stayed at 0.61 in 2024. This suggests that Uber may have faced challenges in maintaining a strong cash position relative to its current liabilities in 2021 and 2022.
Overall, Uber's liquidity ratios indicate some fluctuations in its ability to meet short-term obligations over the past five years. It is important for the company to closely monitor and manage its liquidity position to ensure continued operational stability and financial health.
See also:
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 0.00 | 12.63 | 64.13 | 54.32 |
The cash conversion cycle of Uber Technologies Inc has shown fluctuations over the years. At the end of December 31, 2020, the company's cash conversion cycle was 54.32 days, indicating that it takes approximately 54 days for Uber to convert its investments in inventory into cash receipts from sales.
By December 31, 2021, the cash conversion cycle increased to 64.13 days, suggesting that the company took longer to convert its investments in inventory into cash. This may indicate inefficiencies in Uber's working capital management or challenges in converting sales into cash.
However, there was a significant improvement by December 31, 2022, with the cash conversion cycle reducing to 12.63 days. This reduction implies that Uber was able to streamline its operations and convert its inventory into cash more efficiently during this period.
By December 31, 2023, the cash conversion cycle dropped to 0.00 days, indicating that Uber was able to convert its investments in inventory into cash almost immediately. This could be a positive sign of effective inventory management and cash flow optimization.
Further, at the end of December 31, 2024, the cash conversion cycle remained at 0.00 days, suggesting that Uber continued to efficiently manage its working capital and swiftly convert its inventory into cash receipts from sales.
Overall, the trend in Uber's cash conversion cycle shows fluctuations but indicates improvements in working capital efficiency and cash flow management, especially in the later years where the cycle reduced significantly and reached zero days.