Economic Value Added (EVA)
EVA is registered trademark of Stern Stewart.
Economic value added or economic profit is the difference between revenues and costs,where costs include not only expenses, but also cost of capital.
Economic Profit
Uber Technologies Inc., economic profit calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 NOPAT. See details »
2 Cost of capital. See details »
3 Invested capital. See details »
4 2024 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= 3,752 – 17.90% × 14,934 = 1,079
The financial data reveals significant fluctuations in the company’s operational performance and economic profitability over the analyzed period.
- Net Operating Profit After Taxes (NOPAT)
- The NOPAT showed a negative trend in the earlier years, registering substantial losses of -6,617 million US dollars in 2020 and -819 million in 2021. However, in 2022, the loss increased further to -9,117 million. A notable turnaround occurred in 2023 with a positive NOPAT of 2,401 million, which improved further to 3,752 million in 2024. This indicates a recovery phase and enhancement in operational efficiency in the latter years.
- Cost of Capital
- The cost of capital remained relatively stable across the periods, fluctuating narrowly between 16.76% and 17.93%. This suggests that the company’s capital costs have been consistently high but stable, reflecting steady financing conditions or risk perceptions.
- Invested Capital
- Invested capital experienced a declining trend, decreasing from 21,038 million US dollars in 2020 down to 14,934 million in 2024. This reduction could imply asset optimization, divestitures, or efficiency improvements in managing capital resources over time.
- Economic Profit
- Economic profit demonstrated a challenging performance initially with significant negative values: -10,328 million in 2020 and -3,514 million in 2021, followed by a sharp decline to -11,877 million in 2022. Subsequently, economic profit improved markedly to near breakeven in 2023 (-408 million) and then turned positive at 1,079 million in 2024. This turnaround aligns with the improvement in NOPAT and suggests increasing value generation over invested capital in recent years.
Overall, the company’s financials illustrate an initial period of poor profitability and economic value destruction, followed by a clear recovery in operational profitability and a shift towards positive economic profit by the end of the period. The steady cost of capital combined with a reduction in invested capital reflects possible strategic management of financing and asset base, contributing to the improved economic outcomes observed in the latest years.
Net Operating Profit after Taxes (NOPAT)
Uber Technologies Inc., NOPAT calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Elimination of deferred tax expense. See details »
2 Addition of increase (decrease) in allowance for doubtful accounts.
3 Addition of increase (decrease) in restructuring and related charges accrual.
4 Addition of increase (decrease) in equity equivalents to net income (loss) attributable to Uber Technologies, Inc..
5 2024 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 1,629 × 6.70% = 109
6 2024 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 632 × 21.00% = 133
7 Addition of after taxes interest expense to net income (loss) attributable to Uber Technologies, Inc..
8 2024 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= 721 × 21.00% = 151
9 Elimination of after taxes investment income.
The financial data reveals significant fluctuations in the profitability of the company over the observed five-year period. The net income attributable to the company shows a notable trend from substantial losses to considerable profitability.
- Net Income (Loss)
- Initially, the company experienced very large net losses, with the loss amounting to -6,768 million US dollars in 2020. This negative result significantly narrowed in 2021, with losses reducing to -496 million US dollars. However, 2022 saw a dramatic reversal with net losses deepening again to -9,141 million US dollars, indicating potential challenges or one-off expenses during that year. Subsequently, there was a marked recovery in 2023, with the net income turning positive to 1,887 million US dollars. This positive trend continued and further improved in 2024, reaching a net income of 9,856 million US dollars, signaling a strong turnaround and improvement in profitability.
- Net Operating Profit After Taxes (NOPAT)
- The trend in NOPAT mirrors that of net income with persistent losses in the initial years followed by improvements. In 2020, NOPAT was negative at -6,617 million US dollars, narrowing to -819 million US dollars in 2021. In 2022, this metric worsened sharply to a loss of -9,117 million US dollars, closely paralleling the net income loss for the year. From 2023 onward, NOPAT turned positive, registering 2,401 million US dollars in 2023 and increasing to 3,752 million US dollars in 2024. This shift indicates enhanced operational efficiency and effective tax management contributing to overall profitability in the latter years.
Overall, the data illustrates a company overcoming significant financial difficulties between 2020 and 2022, with a pronounced recovery beginning in 2023 and accelerating in 2024. This improvement in financial performance suggests effective strategic adjustments, cost management, or increased revenue generation that have reversed previous losses into substantial gains. The parallel movement of net income and NOPAT indicates consistent operational performance improvements alongside tax-related factors.
Cash Operating Taxes
Uber Technologies Inc., cash operating taxes calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
The provision for income taxes experienced significant fluctuations over the observed period. Initially, the provision was a negative value of -192 million US dollars at the end of 2020, indicating a tax benefit. This trend continued and amplified in 2021, reaching a benefit peak of -492 million US dollars. However, the following year saw a reduction in the tax benefit to -181 million US dollars, followed by a notable reversal in 2023 where the provision turned positive to 213 million US dollars, indicating a tax expense. In 2024, the provision saw an extraordinary shift to a substantial tax benefit amounting to -5758 million US dollars.
Cash operating taxes showed a generally increasing trend from 2020 through 2022, rising from 184 million US dollars to 375 million US dollars. In 2023, cash operating taxes decreased to 242 million US dollars and remained relatively stable in 2024 with a slight increase to 250 million US dollars.
- Provision for (benefit from) income taxes
- Exhibits significant volatility with large swings between tax benefits and expenses. The values indicate a trend of fluctuating tax positions, possibly influenced by changes in earnings, tax regulations, or accounting treatments. The abrupt change in 2024 to a large tax benefit suggests the occurrence of unusual or one-time tax events.
- Cash operating taxes
- Show a moderate upward trend initially, peaking in 2022 before declining in subsequent years. The reduction in cash operating taxes despite the volatility in the provision for income taxes suggests differences between accounting for tax expenses and actual tax payments.
Invested Capital
Uber Technologies Inc., invested capital calculation (financing approach)
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Addition of capitalized operating leases.
2 Elimination of deferred taxes from assets and liabilities. See details »
3 Addition of allowance for doubtful accounts receivable.
4 Addition of restructuring and related charges accrual.
5 Addition of equity equivalents to total Uber Technologies, Inc. stockholders’ equity.
6 Removal of accumulated other comprehensive income.
7 Subtraction of construction in progress.
8 Subtraction of marketable securities.
- Total reported debt & leases
- The total reported debt and leases have exhibited a gradual increase from 9,603 million USD in 2020 to a peak of 11,702 million USD in 2023, followed by a slight reduction to 11,436 million USD in 2024. This trend indicates a relatively stable but elevated leverage position with a modest decrease in the most recent period.
- Total stockholders’ equity
- Stockholders’ equity showed significant fluctuations over the observed periods. It increased from 12,266 million USD in 2020 to 14,458 million USD in 2021, then sharply declined to 7,340 million USD in 2022. Subsequently, equity rebounded to 11,249 million USD in 2023 and surged strongly to 21,558 million USD in 2024. This volatility might reflect periods of significant capital restructuring, losses, or valuation adjustments followed by recovery and strengthening of the equity base.
- Invested capital
- Invested capital displayed a downward trend from 21,038 million USD in 2020 to 14,934 million USD in 2024. While there were minor fluctuations between 2021 and 2023, the overall trajectory indicates a reduction in the resources actively employed by the company over the five-year span.
Cost of Capital
Uber Technologies Inc., cost of capital calculations
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 165,909) | 165,909) | ÷ | 177,416) | = | 0.94 | 0.94 | × | 18.90% | = | 17.67% | ||
| Long-term debt and finance leases liabilities3 | 9,878) | 9,878) | ÷ | 177,416) | = | 0.06 | 0.06 | × | 4.03% × (1 – 21.00%) | = | 0.18% | ||
| Operating lease liability4 | 1,629) | 1,629) | ÷ | 177,416) | = | 0.01 | 0.01 | × | 6.70% × (1 – 21.00%) | = | 0.05% | ||
| Total: | 177,416) | 1.00 | 17.90% | ||||||||||
Based on: 10-K (reporting date: 2024-12-31).
1 US$ in millions
2 Equity. See details »
3 Long-term debt and finance leases liabilities. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 169,006) | 169,006) | ÷ | 181,024) | = | 0.93 | 0.93 | × | 18.90% | = | 17.64% | ||
| Long-term debt and finance leases liabilities3 | 10,278) | 10,278) | ÷ | 181,024) | = | 0.06 | 0.06 | × | 5.30% × (1 – 21.00%) | = | 0.24% | ||
| Operating lease liability4 | 1,740) | 1,740) | ÷ | 181,024) | = | 0.01 | 0.01 | × | 6.60% × (1 – 21.00%) | = | 0.05% | ||
| Total: | 181,024) | 1.00 | 17.93% | ||||||||||
Based on: 10-K (reporting date: 2023-12-31).
1 US$ in millions
2 Equity. See details »
3 Long-term debt and finance leases liabilities. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 68,739) | 68,739) | ÷ | 79,972) | = | 0.86 | 0.86 | × | 18.90% | = | 16.24% | ||
| Long-term debt and finance leases liabilities3 | 9,359) | 9,359) | ÷ | 79,972) | = | 0.12 | 0.12 | × | 5.73% × (1 – 21.00%) | = | 0.53% | ||
| Operating lease liability4 | 1,874) | 1,874) | ÷ | 79,972) | = | 0.02 | 0.02 | × | 6.60% × (1 – 21.00%) | = | 0.12% | ||
| Total: | 79,972) | 1.00 | 16.89% | ||||||||||
Based on: 10-K (reporting date: 2022-12-31).
1 US$ in millions
2 Equity. See details »
3 Long-term debt and finance leases liabilities. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 68,152) | 68,152) | ÷ | 79,844) | = | 0.85 | 0.85 | × | 18.90% | = | 16.13% | ||
| Long-term debt and finance leases liabilities3 | 9,863) | 9,863) | ÷ | 79,844) | = | 0.12 | 0.12 | × | 5.25% × (1 – 21.00%) | = | 0.51% | ||
| Operating lease liability4 | 1,829) | 1,829) | ÷ | 79,844) | = | 0.02 | 0.02 | × | 6.70% × (1 – 21.00%) | = | 0.12% | ||
| Total: | 79,844) | 1.00 | 16.76% | ||||||||||
Based on: 10-K (reporting date: 2021-12-31).
1 US$ in millions
2 Equity. See details »
3 Long-term debt and finance leases liabilities. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 101,084) | 101,084) | ÷ | 111,443) | = | 0.91 | 0.91 | × | 18.90% | = | 17.14% | ||
| Long-term debt and finance leases liabilities3 | 8,640) | 8,640) | ÷ | 111,443) | = | 0.08 | 0.08 | × | 6.82% × (1 – 21.00%) | = | 0.42% | ||
| Operating lease liability4 | 1,719) | 1,719) | ÷ | 111,443) | = | 0.02 | 0.02 | × | 7.00% × (1 – 21.00%) | = | 0.09% | ||
| Total: | 111,443) | 1.00 | 17.64% | ||||||||||
Based on: 10-K (reporting date: 2020-12-31).
1 US$ in millions
2 Equity. See details »
3 Long-term debt and finance leases liabilities. See details »
4 Operating lease liability. See details »
Economic Spread Ratio
Uber Technologies Inc., economic spread ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Economic profit1 | 1,079) | (408) | (11,877) | (3,514) | (10,328) | |
| Invested capital2 | 14,934) | 15,670) | 16,340) | 16,078) | 21,038) | |
| Performance Ratio | ||||||
| Economic spread ratio3 | 7.23% | -2.60% | -72.69% | -21.86% | -49.09% | |
| Benchmarks | ||||||
| Economic Spread Ratio, Competitors4 | ||||||
| FedEx Corp. | -5.29% | -3.96% | -3.71% | -0.94% | -5.87% | |
| Union Pacific Corp. | -1.55% | -1.67% | 0.19% | -0.66% | -2.23% | |
| United Airlines Holdings Inc. | -0.99% | 1.37% | -2.81% | -9.81% | -25.37% | |
| United Parcel Service Inc. | 1.18% | 3.99% | 15.15% | 20.94% | -9.14% | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Economic profit. See details »
2 Invested capital. See details »
3 2024 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × 1,079 ÷ 14,934 = 7.23%
4 Click competitor name to see calculations.
The financial data over the five-year period reveals significant fluctuations and a general trend of improvement in key performance indicators.
- Economic Profit
- Economic profit shows a considerable improvement from a highly negative position of -10,328 million US dollars in 2020 to a positive figure of 1,079 million US dollars in 2024. The trajectory includes a reduction in losses in 2021 to -3,514 million US dollars, a sharp dip back to -11,877 million US dollars in 2022, followed by a dramatic recovery in 2023 with a near-break-even point of -408 million US dollars.
- Invested Capital
- Invested capital exhibits a gradual decline from 21,038 million US dollars in 2020 to 14,934 million US dollars in 2024. The downward trend indicates a strategic reduction or optimization of capital investment over the period, with intermittent slight increases such as from 16,078 million in 2021 to 16,340 million in 2022, before resuming the downward trajectory.
- Economic Spread Ratio
- The economic spread ratio, which reflects the difference between return on invested capital and the cost of capital, corresponds with the trends in economic profit. It started at a deeply negative level of -49.09% in 2020, improved to -21.86% in 2021, worsened significantly to -72.69% in 2022, and then showed marked recovery to -2.6% in 2023 and a positive 7.23% in 2024. This pattern signals a recovery in operational efficiency and profitability relative to the cost of invested capital.
Overall, the data indicates an initial period of operational challenges and high losses followed by strategic capital management and operational improvements. The company moved from consistently negative economic profit and spread ratios toward profitability and positive economic returns by the end of the period. The declining invested capital in conjunction with improved economic spread suggests enhanced capital efficiency and a strengthening economic position.
Economic Profit Margin
Uber Technologies Inc., economic profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Economic profit1 | 1,079) | (408) | (11,877) | (3,514) | (10,328) | |
| Revenue | 43,978) | 37,281) | 31,877) | 17,455) | 11,139) | |
| Performance Ratio | ||||||
| Economic profit margin2 | 2.45% | -1.09% | -37.26% | -20.13% | -92.72% | |
| Benchmarks | ||||||
| Economic Profit Margin, Competitors3 | ||||||
| FedEx Corp. | -4.24% | -3.05% | -2.64% | -0.72% | -4.88% | |
| Union Pacific Corp. | -3.97% | -4.27% | 0.45% | -1.77% | -6.67% | |
| United Airlines Holdings Inc. | -0.86% | 1.15% | -2.57% | -20.67% | -73.37% | |
| United Parcel Service Inc. | 0.62% | 2.00% | 6.76% | 9.56% | -3.58% | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Economic profit. See details »
2 2024 Calculation
Economic profit margin = 100 × Economic profit ÷ Revenue
= 100 × 1,079 ÷ 43,978 = 2.45%
3 Click competitor name to see calculations.
The financial data reveals significant fluctuations and developments over the observed five-year period, highlighting both challenges and improvement trends.
- Revenue
- There is a consistent and strong upward trajectory in revenue, increasing from $11,139 million in 2020 to $43,978 million in 2024. This trend indicates robust top-line growth, with revenue nearly quadrupling over the period, suggesting effective market penetration and possibly expansion in services or geographic reach.
- Economic Profit
- The economic profit shows considerable volatility, starting at a substantial negative value of -$10,328 million in 2020, then improving markedly in 2021 to -$3,514 million. However, there is a sharp decline again in 2022 to -$11,877 million, followed by a significant recovery in 2023 with a near breakeven result at -$408 million and finally turning positive at $1,079 million in 2024. This pattern may reflect varying cost structures, investment cycles, or operating efficiencies that impacted profitability.
- Economic Profit Margin
- The economic profit margin mirrors the trend in economic profit, starting from a deep negative margin of -92.72% in 2020 and improving substantially in 2021 to -20.13%. A regression occurs in 2022 with the margin worsening to -37.26%, before approaching neutrality at -1.09% in 2023 and finally moving into positive territory at 2.45% in 2024. The margin improvement suggests enhanced profitability relative to revenue, reinforcing the effect of recovering economic profit and more efficient operations.
Overall, the data reflects a company on a growth path, with increasing revenue accompanied by a challenging but ultimately improving economic profit and margin profile. The transition to positive economic profit and margin in the latest year signals a turning point towards sustainable profitability after several years of significant losses.