Uber Technologies Inc (UBER)
Interest coverage
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,733,000 | 1,678,000 | 329,000 | -2,659,000 | -8,758,000 | -8,495,000 | -9,895,000 | -6,730,000 | -505,000 | -2,258,000 | -810,000 | -3,251,000 | -6,503,000 | -6,645,000 | -6,760,000 | -10,186,000 | -7,902,000 |
| Interest expense (ttm) | US$ in thousands | 633,000 | 629,000 | 609,000 | 604,000 | 565,000 | 544,000 | 521,000 | 497,000 | 483,000 | 471,000 | 460,000 | 455,000 | 458,000 | 441,000 | 419,000 | 460,000 | 559,000 |
| Interest coverage | 4.32 | 2.67 | 0.54 | -4.40 | -15.50 | -15.62 | -18.99 | -13.54 | -1.05 | -4.79 | -1.76 | -7.15 | -14.20 | -15.07 | -16.13 | -22.14 | -14.14 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,733,000K ÷ $633,000K
= 4.32
Based on the interest coverage ratios provided for Uber Technologies Inc over the past eight quarters, there are noticeable fluctuations in the company's ability to cover its interest expenses with its operating income.
In Q4 2023, the interest coverage ratio was 7.77, indicating that Uber generated sufficient operating income to cover its interest expenses nearly eight times over. This suggests a healthy financial position in terms of servicing debt obligations.
Conversely, in Q3 2023, the interest coverage ratio dropped to 1.73, signaling a decline in profitability relative to interest expenses. The ratio further deteriorated in Q2 2023 and Q1 2023, reaching negative values (-1.52 and -3.82, respectively). This implies that Uber's operating income was insufficient to cover its interest payments during these periods.
Looking back at Q4 2022, Q3 2022, Q2 2022, and Q1 2022, the interest coverage ratios were consistently negative, ranging from -4.05 to -6.17. These figures suggest a persistent inability to cover interest expenses with operating income, reflecting a concerning trend in the company's financial performance.
Overall, the interest coverage ratios for Uber Technologies Inc have been volatile, with occasional periods of strong coverage but also sustained periods of insufficient coverage. This variability indicates potential challenges in the company's ability to manage its debt obligations effectively and underscores the importance of closely monitoring its financial performance.
Peer comparison
Dec 31, 2023