Uber Technologies Inc (UBER)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	5,893,000	5,485,000	4,208,000	4,295,000	5,647,000
Short-term investments	US$ in thousands	1,084,000	727,000	103,000	1,180,000	1,180,000
Receivables	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	11,476,000	9,454,000	8,853,000	9,024,000	6,865,000
Quick ratio		0.61	0.66	0.49	0.61	0.99

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($5,893,000K + $1,084,000K + $—K) ÷ $11,476,000K
= 0.61

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 or higher is generally considered satisfactory, indicating that the company can cover its current liabilities with its quick assets.

Uber Technologies Inc's quick ratio has shown some variability over the years based on the provided data:

1. As of December 31, 2020, Uber had a quick ratio of 0.99, indicating that it had almost enough quick assets to cover its current liabilities.

2. By December 31, 2021, the quick ratio decreased to 0.61, potentially signaling a tighter liquidity position or a decrease in quick assets relative to current liabilities.

3. The quick ratio of 0.49 on December 31, 2022, suggests a significant decline in Uber's ability to meet short-term obligations using its liquid assets, potentially raising concerns about liquidity management.

4. The quick ratio improved to 0.66 by December 31, 2023, indicating a partial recovery in the company's liquidity position compared to the previous year.

5. However, by December 31, 2024, the quick ratio returned to 0.61, remaining below the ideal threshold of 1 and indicating that Uber still faces challenges in maintaining sufficient liquid assets to cover its current liabilities.

In summary, Uber's quick ratio has fluctuated over the years, with some periods showing improvements and others indicating potential challenges in liquidity management. The company may need to closely monitor and manage its liquidity position to ensure it can meet its short-term obligations effectively.