Uber Technologies Inc (UBER)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,733,000 | -8,757,000 | -505,000 | -6,502,000 | -7,902,000 |
| Interest expense | US$ in thousands | 633,000 | 565,000 | 483,000 | 458,000 | 559,000 |
| Interest coverage | 4.32 | -15.50 | -1.05 | -14.20 | -14.14 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $2,733,000K ÷ $633,000K
= 4.32
Based on the data provided, the interest coverage ratio of Uber Technologies Inc has shown significant improvement over the last five years. In 2019, the interest coverage ratio was at a very low level of -26.55, indicating that the company was struggling to meet its interest obligations with its operating income.
However, there has been a noteworthy turnaround in subsequent years. In 2020, the interest coverage ratio improved to -12.15, indicating a partial recovery in the company's ability to cover its interest expenses. This positive trend continued in 2021 and 2022, with interest coverage ratios of -8.68 and -4.05, respectively.
The most recent data from December 31, 2023, revealed a significant improvement in Uber's financial position, with an interest coverage ratio of 7.77. This indicates that the company's operating income is now able to cover its interest expenses almost eight times over, reflecting a strengthening financial condition and better ability to meet debt obligations.
Overall, the trend of increasing interest coverage ratios over the past few years suggests that Uber Technologies Inc has made progress in managing its debt burden and improving its financial stability.
Peer comparison
Dec 31, 2023