Uber Technologies Inc (UBER)
Solvency ratios
| 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 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.24 | 0.26 | 0.27 | 0.29 | 0.29 | 0.30 | 0.30 | 0.28 | 0.24 | 0.25 | 0.22 | 0.23 | 0.23 | 0.23 | 0.24 | 0.19 | 0.18 | 0.18 | 0.15 | 0.28 |
| Debt-to-capital ratio | 0.46 | 0.50 | 0.52 | 0.55 | 0.56 | 0.60 | 0.58 | 0.51 | 0.39 | 0.40 | 0.35 | 0.36 | 0.38 | 0.43 | 0.41 | 0.33 | 0.29 | 0.27 | 0.22 | — |
| Debt-to-equity ratio | 0.84 | 0.99 | 1.07 | 1.23 | 1.26 | 1.48 | 1.39 | 1.04 | 0.64 | 0.67 | 0.55 | 0.57 | 0.62 | 0.75 | 0.70 | 0.50 | 0.40 | 0.38 | 0.28 | — |
| Financial leverage ratio | 3.44 | 3.84 | 3.93 | 4.32 | 4.37 | 4.98 | 4.66 | 3.68 | 2.68 | 2.65 | 2.56 | 2.55 | 2.71 | 3.23 | 2.96 | 2.65 | 2.24 | 2.14 | 1.95 | — |
The solvency ratios of Uber Technologies Inc indicate the company's ability to meet its long-term financial obligations.
The debt-to-assets ratio has shown a slight decrease over the past two years, from 0.29 in Q4 2022 to 0.25 in Q4 2023. This indicates that Uber has been able to reduce its reliance on debt to finance its assets.
The debt-to-capital ratio and debt-to-equity ratio have shown more fluctuation, with an increase in Q4 2023 compared to the same period in 2022. The debt-to-capital ratio has increased from 0.56 to 0.46, while the debt-to-equity ratio has increased from 1.28 to 0.85. These increases suggest that Uber's capital structure has become more leveraged over time.
The financial leverage ratio, which measures the extent to which the company is using debt to finance its operations, has also shown an increase from 4.37 in Q4 2022 to 3.44 in Q4 2023. This implies that Uber has been able to reduce its reliance on debt for financing its assets and operations.
Overall, Uber's solvency ratios indicate a mix of leveraging strategies, with a decreasing trend in debt-to-assets ratio and a fluctuating trend in debt-to-capital and debt-to-equity ratios. The company's ability to manage its long-term financial obligations will be key in ensuring sustainable growth and financial stability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio measures a company's ability to cover its interest expenses with its earnings. A higher ratio indicates a stronger ability to meet interest obligations. For Uber Technologies Inc:
- In Q4 2023, the interest coverage ratio was 7.77, indicating that the company generated 7.77 times the earnings needed to cover its interest expenses during that quarter. This suggests a strong ability to meet interest obligations.
- In Q3 2023, the interest coverage ratio decreased to 1.73, showing a decline in the company's ability to cover interest expenses compared to the previous quarter.
- In Q2 2023 and Q1 2023, Uber had negative interest coverage ratios of -1.52 and -3.82 respectively. This implies that the company's earnings were insufficient to cover its interest expenses during those quarters.
- The trend continues in previous quarters, with negative interest coverage ratios ranging from -4.05 to -6.17 in 2022, indicating ongoing challenges in meeting interest obligations.
Overall, while the interest coverage ratio improved in Q4 2023, Uber has experienced fluctuations and periods of inadequate earnings to cover its interest expenses in recent quarters. This highlights the importance of monitoring the company's financial performance and stability in terms of managing its debt and interest obligations.