Uber Technologies Inc (UBER)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 4,228,000 | 3,854,000 | 1,336,000 | 866,000 | 1,110,000 | 391,000 | -1,033,000 | -3,798,000 | -9,579,000 | -10,062,000 | -11,436,000 | -10,185,000 | -5,666,000 | -5,930,000 | -4,491,000 | -4,954,000 | -6,488,000 | -6,630,000 | -6,722,000 | -10,158,000 |
| Interest expense (ttm) | US$ in thousands | 523,000 | 561,000 | 584,000 | 589,000 | 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 |
| Interest coverage | 8.08 | 6.87 | 2.29 | 1.47 | 1.75 | 0.62 | -1.70 | -6.29 | -16.95 | -18.50 | -21.95 | -20.49 | -11.73 | -12.59 | -9.76 | -10.89 | -14.17 | -15.03 | -16.04 | -22.08 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $4,228,000K ÷ $523,000K
= 8.08
The interest coverage ratio of Uber Technologies Inc has been improving steadily over the past few years, as indicated by the data provided. The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt with its operating income.
From March 31, 2020, to December 31, 2021, the interest coverage ratio was consistently negative, indicating that Uber's operating income was insufficient to cover its interest expenses during this period. However, starting from March 31, 2022, there was a notable improvement in the interest coverage ratio, although it remained negative.
By the end of December 31, 2024, the interest coverage ratio had turned positive, reaching 8.08. This suggests that Uber's operating income was finally able to cover its interest expenses comfortably at this point in time. The positive trend in the interest coverage ratio reflects an improvement in Uber's financial health and ability to meet its debt obligations using its operating income.
Overall, the improving trend in Uber's interest coverage ratio indicates a positive trajectory in the company's ability to manage its debt and covers its interest expenses with its operating income over the specified period.
Peer comparison
Dec 31, 2024