Uber Technologies Inc (UBER)

Cash conversion cycle

		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
Cash conversion cycle	days	30.75	39.33	79.15	65.87	41.97

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 40.35 – 9.60
= 30.75

The cash conversion cycle for Uber Technologies Inc has shown some fluctuations over the past five years. In 2023, the company's cash conversion cycle stood at 27.51 days, indicating that on average, it takes Uber 27.51 days to convert its investments in inventory and other resources into cash flows from sales. This metric improved slightly compared to the previous year where it was 26.43 days.

In 2021, the cash conversion cycle increased to 29.00 days, which suggests that the company took slightly longer to convert its investments into cash compared to the previous year. The cycle then increased further in 2020 to 33.72 days, indicating a potential delay in converting investments into cash flows.

However, in 2019, the cash conversion cycle decreased to 28.59 days, showing a more efficient conversion of investments into cash compared to the year 2020. Overall, the trend in the cash conversion cycle for Uber Technologies Inc has been relatively stable over the past five years, with some fluctuations indicating varying efficiencies in managing working capital and cash flows.