Uber Technologies Inc (UBER)

Return on total capital

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	3,575,000	1,110,000	-8,861,000	-3,834,000	-6,488,000
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	21,558,000	11,249,000	7,340,000	14,458,000	12,266,000
Return on total capital		16.58%	9.87%	-120.72%	-26.52%	-52.89%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $3,575,000K ÷ ($—K + $21,558,000K)
= 16.58%

Uber Technologies Inc's return on total capital has shown significant fluctuations over the years based on the provided data.

As of December 31, 2020, the return on total capital was at a negative 52.89%, indicating that the company was not effectively utilizing its capital to generate profits. By the end of December 31, 2021, there was a slight improvement as the return on total capital decreased to -26.52%, yet still in negative territory.

However, there was a drastic decline in performance by the end of December 31, 2022, with a return on total capital of -120.72%, implying a significant decrease in profitability and efficiency in capital utilization.

The trend started to reverse in the following years, as of December 31, 2023, Uber's return on total capital turned positive at 9.87%, indicating an improvement in capital efficiency and profitability. By the end of December 31, 2024, there was a further increase in return on total capital to 16.58%, reflecting a more efficient use of capital to generate profits.

Overall, Uber Technologies Inc has shown varying performance in terms of return on total capital, with notable improvements in recent years compared to the initial negative returns. Moving forward, monitoring this ratio will be crucial to assess the company's ability to continue generating profits while effectively utilizing its capital resources.