Uber Technologies Inc (UBER)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.24 | 0.29 | 0.24 | 0.23 | 0.18 |
| Debt-to-capital ratio | 0.46 | 0.56 | 0.39 | 0.38 | 0.29 |
| Debt-to-equity ratio | 0.84 | 1.26 | 0.64 | 0.62 | 0.40 |
| Financial leverage ratio | 3.44 | 4.37 | 2.68 | 2.71 | 2.24 |
The solvency ratios of Uber Technologies Inc over the past five years indicate the company's ability to meet its long-term financial obligations and maintain a healthy capital structure.
The debt-to-assets ratio has been relatively stable, ranging from 0.19 to 0.29, with the latest value at 0.25 as of December 31, 2023. This ratio signifies that, on average, 25% of the company's assets are financed by debt, indicating a moderate level of leverage.
The debt-to-capital ratio has shown a decreasing trend from 0.30 in 2019 to 0.46 in 2023. This indicates that debt financing accounts for 46% of the company's total capital, suggesting a reasonable balance between debt and equity in funding the business operations.
The debt-to-equity ratio has fluctuated over the years but has decreased significantly from 1.28 in 2022 to 0.85 in 2023. This ratio indicates that for every $1 of equity, the company has $0.85 of debt, reflecting a high level of leverage. However, the downward trend suggests an improvement in the company's financial leverage.
The financial leverage ratio, measuring the company's total assets relative to equity, has also shown a declining trend from 2.24 in 2019 to 3.44 in 2023. This ratio indicates that Uber Technologies Inc has relied more on debt financing compared to equity, but the decrease over time reflects a more balanced financial structure.
In conclusion, Uber Technologies Inc has maintained a relatively stable solvency position over the years, with improvements in certain ratios indicating a healthier capital structure and reduced reliance on debt financing.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 4.32 | -15.50 | -1.05 | -14.20 | -14.14 |
The interest coverage ratio of Uber Technologies Inc has shown a positive trend over the past five years. In 2019, the ratio was at its lowest point of -26.55, indicating that the company's earnings before interest and taxes (EBIT) were insufficient to cover its interest expenses. However, significant improvements were made in subsequent years, with the ratio increasing to -12.15 in 2020, -8.68 in 2021, -4.05 in 2022, and reaching a positive value of 7.77 in 2023.
The positive interest coverage ratio of 7.77 in 2023 indicates that Uber's EBIT is more than sufficient to cover its interest expenses, which is a positive sign for creditors and investors. This improvement suggests that Uber has been able to manage its debt obligations more effectively and generate healthier earnings relative to its interest expenses in recent years. Overall, the positive trend in the interest coverage ratio reflects a strengthening financial position for Uber Technologies Inc.