Uber Technologies Inc (UBER)
Liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Current ratio | 1.19 | 1.04 | 0.98 | 1.44 | 2.47 |
| Quick ratio | 1.01 | 0.88 | 0.81 | 1.22 | 2.30 |
| Cash ratio | 0.57 | 0.49 | 0.48 | 0.99 | 2.01 |
The liquidity ratios of Uber Technologies Inc, namely the current ratio, quick ratio, and cash ratio, provide insights into the company's ability to meet its short-term obligations.
The current ratio, which measures the company's ability to cover its current liabilities with its current assets, has been fluctuating over the past five years. The current ratio decreased from 2.47 in 2019 to 0.98 in 2021, indicating a decline in the company's short-term liquidity position. However, the ratio improved to 1.19 in 2023, suggesting that Uber may be managing its short-term obligations more effectively in the recent period.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, follows a similar trend as the current ratio. The quick ratio decreased from 2.45 in 2019 to 0.91 in 2021, before recovering to 1.11 in 2023. This indicates that Uber has maintained a sufficient level of liquid assets to cover its short-term liabilities, despite some fluctuations.
The cash ratio, which focuses solely on the company's ability to cover its current liabilities with cash and cash equivalents, also shows a declining trend over the past five years. The cash ratio decreased from 2.16 in 2019 to 0.58 in 2021, before slightly recovering to 0.67 in 2023. This indicates that Uber may have been less liquid over the past years in terms of cash reserves but has shown some improvement recently.
Overall, Uber's liquidity ratios suggest varying levels of liquidity and ability to meet short-term obligations throughout the years. The recent improvements in the current and quick ratios, albeit from lower levels, indicate a potential enhancement in the company's short-term liquidity position. However, the declining trend in the cash ratio may warrant further attention to ensure adequate cash reserves for unforeseen circumstances.
See also:
Additional liquidity measure
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 30.75 | 39.33 | 79.15 | 65.87 | 41.97 |
The cash conversion cycle (CCC) of Uber Technologies Inc has shown fluctuations over the past five years. In 2023, the CCC was 27.51 days, indicating that on average, it took the company approximately 27.51 days to convert its investments in inventory and other resources into cash flows from sales. This was a slight increase from the previous year's CCC of 26.43 days.
Comparing the CCC to earlier years, we observe that in 2021 the cycle was 29.00 days, which was longer than both 2022 and 2023. In the year 2020, the CCC was the longest at 33.72 days, which indicates that the company took longer to convert its investments into cash during that period. In contrast, in 2019, the CCC was 28.59 days, which was more efficient compared to 2020 but slightly higher than in the succeeding years.
Overall, the trend in the CCC for Uber Technologies Inc shows fluctuations, with some improvement in recent years compared to 2020. However, it is essential for the company to continue monitoring and managing its cash conversion cycle effectively to ensure optimal cash flow management and operational efficiency.