Uber Technologies Inc (UBER)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 38,699,000 | 32,109,000 | 38,774,000 | 33,252,000 | 31,761,000 |
| Total stockholders’ equity | US$ in thousands | 11,249,000 | 7,340,000 | 14,458,000 | 12,266,000 | 14,190,000 |
| Financial leverage ratio | 3.44 | 4.37 | 2.68 | 2.71 | 2.24 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $38,699,000K ÷ $11,249,000K
= 3.44
The financial leverage ratio for Uber Technologies Inc has fluctuated over the past five years. In 2023, the ratio stands at 3.44, indicating that the company's reliance on debt to finance its operations has decreased compared to the previous year. This suggests an improvement in the company's ability to cover its debt obligations using its assets. However, the ratio remains relatively high compared to 2021 and 2020, where it was 2.68 and 2.71 respectively, indicating increased leverage during those years.
In 2019, the financial leverage ratio was at its lowest at 2.24, showing that Uber had a lower level of debt relative to its assets that year. The upward trend in leverage from 2019 to 2022 may indicate a strategic decision to use more debt to fund growth opportunities or operational needs. It is important for investors and stakeholders to closely monitor changes in the financial leverage ratio as it can impact the company's financial stability and risk profile.
Peer comparison
Dec 31, 2023