Uber Technologies Inc (UBER)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 9,459,000 | 9,265,000 | 9,276,000 | 7,560,000 | 5,707,000 |
| Total stockholders’ equity | US$ in thousands | 11,249,000 | 7,340,000 | 14,458,000 | 12,266,000 | 14,190,000 |
| Debt-to-capital ratio | 0.46 | 0.56 | 0.39 | 0.38 | 0.29 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $9,459,000K ÷ ($9,459,000K + $11,249,000K)
= 0.46
The debt-to-capital ratio for Uber Technologies Inc has shown fluctuations over the past five years. As of December 31, 2023, the ratio stood at 0.46, indicating that 46% of the company's capital structure was funded by debt. This represents a decrease from the previous year's ratio of 0.56.
The downward trend in the debt-to-capital ratio suggests that Uber has been reducing its reliance on debt financing relative to its total capital. This can be seen as a positive development as lower debt levels can decrease financial risk and improve the company's financial stability.
Despite the improvement in 2023, the debt-to-capital ratio remains higher compared to the ratios in 2020 and 2019. This indicates that Uber still has a significant portion of its capital structure financed by debt, which may imply higher interest expenses and financial obligations.
Overall, while the decreasing trend in the debt-to-capital ratio is encouraging, investors and stakeholders should continue to monitor Uber's capital structure and debt levels to assess the company's financial health and risk profile.
Peer comparison
Dec 31, 2023