Uber Technologies Inc (UBER)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 12.63 | 64.13 | 54.32 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 0.00 | 12.63 | 64.13 | 54.32 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
The cash conversion cycle is a key metric that reflects the efficiency of Uber Technologies Inc in managing its working capital. Looking at the data provided:
- In December 31, 2020, the cash conversion cycle was 54.32 days, indicating that it took Uber approximately 54 days to convert its investments in inventory and accounts receivable into cash.
- By December 31, 2021, the cash conversion cycle increased to 64.13 days, suggesting a longer period was needed for Uber to convert its investments into cash compared to the previous year.
- In the following years, notably by December 31, 2022, the cash conversion cycle decreased significantly to 12.63 days, reaching an impressive efficiency level in managing working capital.
- Finally, by December 31, 2023 and 2024, the cash conversion cycle was reported as 0.00 days, indicating that Uber was able to convert its investments into cash almost instantaneously during these periods, which is a remarkable feat in terms of working capital management.
Overall, the trend in Uber's cash conversion cycle shows fluctuations over the years, but a clear improvement in efficiency, as seen by the decrease and eventual elimination of days required to convert investments into cash. This suggests that Uber has been successful in managing its working capital and optimizing its cash flow operations over the years.
Peer comparison
Dec 31, 2024