Uber Technologies Inc (UBER)
Liquidity ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.07 | 1.41 | 1.21 | 1.21 | 1.19 | 1.14 | 1.23 | 1.06 | 1.04 | 1.04 | 0.98 | 1.00 | 0.98 | 1.19 | 1.01 | 1.14 | 1.44 | 1.36 | 1.64 | 1.68 |
| Quick ratio | 0.61 | 0.92 | 0.69 | 0.66 | 0.66 | 0.55 | 0.64 | 0.48 | 0.49 | 0.54 | 0.49 | 0.48 | 0.46 | 0.94 | 0.65 | 0.78 | 0.99 | 1.05 | 1.32 | 1.36 |
| Cash ratio | 0.61 | 0.92 | 0.69 | 0.66 | 0.66 | 0.55 | 0.64 | 0.48 | 0.49 | 0.54 | 0.49 | 0.48 | 0.46 | 0.94 | 0.65 | 0.78 | 0.99 | 1.05 | 1.32 | 1.36 |
The current ratio of Uber Technologies Inc has been fluctuating over the analyzed period, ranging from a high of 1.68 in March 2020 to a low of 0.98 in December 2021. However, it has generally remained above 1, indicating that the company has had more current assets to cover its current liabilities.
The quick ratio, which measures the company's ability to meet its short-term obligations with its most liquid assets, has shown a similar trend. It has varied from 1.32 in June 2020 to 0.61 in December 2024. The quick ratio has also generally stayed above 1 until the last quarter of 2024, indicating that Uber has had a solid ability to cover its short-term liabilities with its liquid assets.
The cash ratio, representing the most conservative measure of liquidity, has exhibited similar fluctuations to the quick ratio, from 1.32 in June 2020 to 0.61 in December 2024. The company has generally maintained a level of cash reserves that allowed it to cover its short-term obligations, although there has been a slight decrease in this ratio towards the end of the analyzed period.
Overall, Uber Technologies Inc has shown a reasonably strong liquidity position, as evidenced by its current, quick, and cash ratios hovering above 1 for the most part of the analyzed time frame. However, a slight deterioration in these ratios towards the end of 2024 suggests a need for the company to closely monitor its liquidity position and take appropriate measures to ensure it can meet its short-term obligations effectively.
See also:
Additional liquidity measure
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 14.01 | 15.61 | 15.67 | 12.63 | 12.40 | 34.49 | 47.33 | 24.63 | 19.66 | 17.23 | 14.98 | 45.95 | 12.09 | 6.58 | 9.63 |
The cash conversion cycle is a financial metric that represents the time it takes for a company to convert its investments in inventory back into cash flow. It is calculated by adding the average number of days inventory sits in stock plus the average collection period for receivables and then subtracting the average payment period for payables.
For Uber Technologies Inc, the cash conversion cycle has varied over the years based on the data provided. In March 2020, the company had a cash conversion cycle of 9.63 days, indicating a relatively efficient conversion of inventory to cash. However, by December 2020, this figure had significantly increased to 45.95 days, suggesting potential challenges in managing working capital efficiently.
Throughout 2021 and early 2022, the cash conversion cycle remained elevated, indicating a longer time taken to convert investments into cash. However, towards the end of 2023 and into 2024, the cash conversion cycle decreased to 0 days, which could indicate improvements in inventory management, receivables collection, and payables efficiency.
It is essential for Uber Technologies Inc to closely monitor and manage its cash conversion cycle to ensure optimal cash flow management and working capital efficiency. A consistently low or decreasing cash conversion cycle can indicate operational effectiveness and financial health, while a high or increasing cycle may suggest potential liquidity issues or inefficiencies in the company's operations.