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.