Uber Technologies Inc (UBER)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	9,856,000	1,887,000	-9,245,000	-496,000	-6,754,000
Total stockholders’ equity	US$ in thousands	21,558,000	11,249,000	7,340,000	14,458,000	12,266,000
ROE		45.72%	16.77%	-125.95%	-3.43%	-55.06%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $9,856,000K ÷ $21,558,000K
= 45.72%

The return on equity (ROE) is a measure of a company's profitability relative to its shareholders' equity. For Uber Technologies Inc, the ROE has shown significant fluctuations over the years:

1. As of December 31, 2020, Uber had a negative ROE of -55.06%. This indicates that the company's net income was insufficient to generate a positive return for its shareholders' equity.

2. By December 31, 2021, Uber's ROE improved to -3.43%, but it was still negative. The company may have made progress in utilizing its equity more efficiently.

3. However, as of December 31, 2022, Uber's ROE deteriorated sharply to -125.95%, a substantial decline from the previous year. This suggests that Uber's profitability worsened significantly or that its equity base expanded rapidly.

4. The trend reversed by December 31, 2023, with Uber achieving a positive ROE of 16.77%. This indicates that the company generated a reasonable return on its shareholders' equity during this period.

5. Finally, by December 31, 2024, Uber's ROE further improved to 45.72%, showcasing a significant recovery and robust profitability relative to its equity base.

In conclusion, Uber Technologies Inc has experienced fluctuations in its return on equity over the years, with periods of negative ROE followed by notable improvements. Shareholders and investors can monitor these trends to assess the company's profitability and efficiency in utilizing its equity.