Uber Technologies Inc (UBER)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.38 | 3.44 | 4.37 | 2.68 | 2.71 |
Uber Technologies Inc has consistently maintained a very healthy solvency position over the analyzed period, as evident from its solvency ratios. The Debt-to-assets ratio remained at 0.00 throughout all five years, indicating that the company's total debt level was negligible in relation to its total assets. Similarly, the Debt-to-capital ratio also stood at 0.00 for each year, reflecting a minimal reliance on debt in financing its operations relative to its total capital.
The Debt-to-equity ratio also remained at 0.00 across all the years, emphasizing the company's ability to operate with minimal debt in comparison to its equity. This signifies a strong financial position with a high level of equity as the primary funding source.
The Financial leverage ratio, which provides a measure of a company's total debt relative to its equity, shows some fluctuation within the period. Starting at 2.71 in 2020, the ratio decreased to 2.38 in 2024, with a peak of 4.37 in 2022. This fluctuation indicates changes in the company's debt and equity structure over the years, although the overall solvency position remains robust.
Collectively, these ratios reflect Uber's prudent financial management, with a low level of debt utilization and a strong capacity to meet its financial obligations through its equity and internal resources.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 6.84 | 1.75 | -15.68 | -7.94 | -14.17 |
Interest coverage ratio indicates the company's ability to meet its interest obligations from its operating income. A higher ratio indicates a stronger ability to cover interest expenses.
For Uber Technologies Inc, the interest coverage ratios for the past five years have been volatile. In December 2020 and December 2022, the ratios were significantly negative which means the company's operating income was insufficient to cover its interest expenses.
However, there has been an improvement in the following years. By December 2024, the interest coverage ratio reached 6.84, indicating that Uber's operating income was able to cover its interest obligations approximately 6.84 times.
Overall, Uber's interest coverage has shown signs of recovery and improvement, although it experienced significant challenges in earlier years. Investors and creditors may find the recent upward trend in the interest coverage ratio encouraging as it suggests a better ability to meet interest payments.