Uber Technologies Inc (UBER)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 39.40% | 39.76% | 38.33% | 46.43% | 53.73% |
| Operating profit margin | 6.36% | 2.98% | -5.75% | -21.97% | -43.66% |
| Pretax margin | 9.38% | 6.23% | -29.57% | -5.87% | -62.36% |
| Net profit margin | 22.41% | 5.06% | -29.00% | -2.84% | -60.63% |
Uber Technologies Inc has shown a decline in its gross profit margin over the years, starting at 53.73% in December 2020 and dropping to 39.40% by December 2024. This downward trend indicates a decrease in the company's ability to generate revenue after accounting for the cost of goods sold.
In terms of operating profit margin, Uber has improved significantly from a negative margin of -43.66% in December 2020 to a positive margin of 6.36% by December 2024. This positive trend reflects the company's efforts in reducing operating expenses and becoming more efficient in generating profits from its core operations.
Similarly, Uber's pretax margin has shown a remarkable turnaround, moving from a negative margin of -62.36% in December 2020 to a positive margin of 9.38% by December 2024. This positive shift suggests that Uber has been successful in managing its pre-tax earnings relative to its total revenue over the years.
Finally, the net profit margin of Uber has witnessed a significant improvement, transitioning from a substantial loss of -60.63% in December 2020 to a positive margin of 22.41% by December 2024. This positive trend highlights Uber's ability to effectively control its costs and expenses to achieve profitability.
In summary, while Uber faced challenges initially with declining gross profit margins, the company has managed to significantly enhance its profitability ratios over the years through operational efficiency and cost management, ultimately resulting in a strong performance in terms of net profit margin by the end of 2024.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.46% | 2.87% | -5.71% | -9.89% | -14.62% |
| Return on assets (ROA) | 19.23% | 4.88% | -28.79% | -1.28% | -20.31% |
| Return on total capital | 16.58% | 9.87% | -120.72% | -26.52% | -52.89% |
| Return on equity (ROE) | 45.72% | 16.77% | -125.95% | -3.43% | -55.06% |
Based on the provided data, the profitability ratios of Uber Technologies Inc show a varying trend over the years.
1. Operating Return on Assets (Operating ROA): This ratio indicates the efficiency of the company in generating operating profits from its assets. Uber's Operating ROA has improved from -14.62% in December 2020 to 5.46% in December 2024, showing a positive trend over the years.
2. Return on Assets (ROA): ROA measures the profitability of the company in generating profits from its total assets. Uber's ROA has fluctuated widely, starting from -20.31% in December 2020, improving to 19.23% in December 2024. This indicates a significant improvement in the company's asset utilization efficiency.
3. Return on Total Capital: This ratio reflects the return generated from all sources of capital, including debt and equity. Uber's Return on Total Capital has shown improvement from -52.89% in December 2020 to 16.58% in December 2024. This indicates the company's ability to generate returns for all providers of capital.
4. Return on Equity (ROE): ROE measures the return generated from shareholders' equity. Uber's ROE has also fluctuated, ranging from -55.06% in December 2020 to 45.72% in December 2024. The positive increase in ROE signifies an improvement in profitability and efficiency in utilizing shareholders' equity.
Overall, Uber's profitability ratios have shown a positive trend, with improvements in operating efficiency, asset utilization, and returns generated for both debt and equity providers. This suggests enhanced profitability and value creation for the company over the years.