Return on Capital (ROC)
Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.
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- Cash Flow Statement
- Common-Size Income Statement
- Analysis of Profitability Ratios
- Analysis of Reportable Segments
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Enterprise Value (EV)
- Enterprise Value to EBITDA (EV/EBITDA)
- Return on Equity (ROE) since 2019
- Price to Book Value (P/BV) since 2019
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Return on Invested Capital (ROIC)
Uber Technologies Inc., ROIC calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| ROIC3 | ||||||
| Benchmarks | ||||||
| ROIC, Competitors4 | ||||||
| FedEx Corp. | ||||||
| Union Pacific Corp. | ||||||
| United Airlines Holdings Inc. | ||||||
| United Parcel Service Inc. | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 NOPAT. See details »
2 Invested capital. See details »
3 2025 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
The analysis reveals a significant improvement in Return on Invested Capital (ROIC) over the observed period. Initially, the metric reflects substantial losses, transitioning to positive and progressively increasing returns.
- Net Operating Profit After Taxes (NOPAT)
- NOPAT demonstrates a dramatic shift from negative values in 2021 and 2022 to positive figures beginning in 2023. The magnitude of NOPAT increases consistently from US$2,401 million in 2023 to US$5,152 million in 2025, indicating growing profitability.
- Invested Capital
- Invested capital exhibits relative stability throughout the period, fluctuating between US$14,934 million and US$16,340 million. A slight decrease is observed from 2022 to 2024, followed by a modest increase in 2025. These changes are less pronounced than those seen in NOPAT.
- Return on Invested Capital (ROIC)
- ROIC begins at -5.09% in 2021 and declines sharply to -55.79% in 2022, reflecting the negative NOPAT during those years. A substantial turnaround occurs in 2023, with ROIC rising to 15.33%. This positive trend continues, reaching 25.12% in 2024 and further increasing to 32.67% in 2025. The increasing ROIC suggests a growing efficiency in deploying capital to generate profits.
The combined effect of increasing NOPAT and relatively stable invested capital results in a marked improvement in ROIC. The trend indicates a strengthening ability to generate returns from the capital employed.
Decomposition of ROIC
Uber Technologies Inc., decomposition of ROIC
| ROIC | = | OPM1 | × | TO2 | × | 1 – CTR3 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2025 | = | × | × | ||||
| Dec 31, 2024 | = | × | × | ||||
| Dec 31, 2023 | = | × | × | ||||
| Dec 31, 2022 | = | × | × | ||||
| Dec 31, 2021 | = | × | × |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Operating profit margin (OPM). See calculations »
2 Turnover of capital (TO). See calculations »
3 Effective cash tax rate (CTR). See calculations »
The period demonstrates a significant improvement in financial performance as measured by the decomposition of return on invested capital. Initially, the metrics reflect substantial losses, transitioning to increasingly positive results over the observed timeframe.
- Operating Profit Margin (OPM)
- The operating profit margin exhibits a dramatic shift from negative values in 2021 and 2022 to positive figures beginning in 2023. The margin progresses from -2.86% in 2021 to -27.42% in 2022, then sharply increases to 7.09% in 2023, continuing to 9.10% in 2024 and reaching 10.66% in 2025. This indicates a substantial improvement in core operational profitability.
- Turnover of Capital (TO)
- The turnover of capital shows a consistent upward trend throughout the period. Starting at 1.09 in 2021, it increases to 1.95 in 2022, then to 2.38 in 2023, 2.94 in 2024, and finally to 3.30 in 2025. This suggests increasing efficiency in utilizing capital to generate revenue.
- Effective Cash Tax Rate Adjustment (1 – CTR)
- The adjustment for the effective cash tax rate remains constant at 100.00% for 2021 and 2022. A decrease is observed in subsequent years, moving to 90.83% in 2023, 93.74% in 2024, and 92.95% in 2025. This suggests a growing tax liability as profitability increases, but with some fluctuation.
- Return on Invested Capital (ROIC)
- The return on invested capital mirrors the improvements in the underlying components. It begins with a negative value of -5.09% in 2021 and declines further to -55.79% in 2022. A significant turnaround occurs in 2023, with ROIC reaching 15.33%, followed by 25.12% in 2024 and 32.67% in 2025. This demonstrates a substantial and sustained increase in the return generated from invested capital.
The combined effect of improving operating profit margins and increasing capital turnover drives the substantial positive change in return on invested capital. The slight variations in the effective cash tax rate adjustment have a comparatively minor impact on the overall ROIC trend.
Operating Profit Margin (OPM)
Uber Technologies Inc., OPM calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | ||||||
| Add: Cash operating taxes2 | ||||||
| Net operating profit before taxes (NOPBT) | ||||||
| Revenue | ||||||
| Profitability Ratio | ||||||
| OPM3 | ||||||
| Benchmarks | ||||||
| OPM, Competitors4 | ||||||
| FedEx Corp. | ||||||
| Union Pacific Corp. | ||||||
| United Airlines Holdings Inc. | ||||||
| United Parcel Service Inc. | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2025 Calculation
OPM = 100 × NOPBT ÷ Revenue
= 100 × ÷ =
4 Click competitor name to see calculations.
The operating profit margin exhibited a significant improvement over the observed period. Initially negative, the metric transitioned to positive values and demonstrated consistent growth. This improvement is directly correlated with changes in net operating profit before taxes and revenue.
- Operating Profit Margin (OPM)
- In 2021, the operating profit margin stood at -2.86%. This indicates a loss at the operating level relative to revenue. A substantial decline was observed in 2022, with the OPM reaching -27.42%, signifying a considerable operating loss. However, a positive turning point occurred in 2023, as the OPM rose to 7.09%, indicating the beginning of profitability from core operations. This positive trend continued, with the OPM increasing to 9.10% in 2024 and further to 10.66% in 2025. This consistent upward trajectory suggests improving operational efficiency and/or pricing power.
The movement in operating profit margin closely mirrors the trend in net operating profit before taxes. The substantial negative values for NOPBT in 2021 and 2022 directly contributed to the negative OPM during those years. The positive NOPBT values in 2023, 2024, and 2025 are consistent with the positive and increasing OPM observed during the same period.
- Revenue and OPM Relationship
- Revenue increased consistently throughout the period, from US$17,455 million in 2021 to US$52,017 million in 2025. While revenue growth alone does not guarantee profitability, the simultaneous improvement in OPM suggests that the company was able to leverage revenue growth to improve operational performance. The increasing OPM indicates that the cost of generating each dollar of revenue decreased over time, or that the price of goods/services increased at a faster rate than costs.
The progression from substantial operating losses to increasing profitability, as reflected in the OPM, represents a notable shift in the company’s financial performance. The sustained growth in OPM from 2023 to 2025 suggests a strengthening of the underlying business model.
Turnover of Capital (TO)
Uber Technologies Inc., TO calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | ||||||
| Invested capital1 | ||||||
| Efficiency Ratio | ||||||
| TO2 | ||||||
| Benchmarks | ||||||
| TO, Competitors3 | ||||||
| FedEx Corp. | ||||||
| Union Pacific Corp. | ||||||
| United Airlines Holdings Inc. | ||||||
| United Parcel Service Inc. | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Invested capital. See details »
2 2025 Calculation
TO = Revenue ÷ Invested capital
= ÷ =
3 Click competitor name to see calculations.
The analysis reveals a consistent and significant upward trend in the turnover of capital over the five-year period. Revenue demonstrates substantial growth throughout the period, while invested capital exhibits more moderate fluctuations. This combination drives the observed increase in capital turnover.
- Revenue Trend
- Revenue increased steadily from US$17,455 million in 2021 to US$52,017 million in 2025. The largest year-over-year increase occurred between 2021 and 2022, followed by continued, though slightly decelerating, growth in subsequent years. This indicates a strong expansion of sales generation.
- Invested Capital Trend
- Invested capital remained relatively stable, initially increasing slightly from US$16,078 million in 2021 to US$16,340 million in 2022. A decrease is then observed in 2023 to US$15,670 million, followed by a further decline to US$14,934 million in 2024. A slight increase to US$15,770 million is noted in 2025, but remains below the 2022 level. This suggests a potential improvement in capital efficiency as revenue growth outpaces capital investment.
- Turnover of Capital (TO) Analysis
- The turnover of capital ratio increased from 1.09 in 2021 to 3.30 in 2025. This represents a substantial improvement in the efficiency with which capital is used to generate revenue. The ratio more than tripled over the period, indicating that each dollar of invested capital generated significantly more revenue in 2025 than in 2021. The most rapid increase in TO occurred between 2022 and 2024, coinciding with strong revenue growth and a decrease in invested capital.
The increasing trend in turnover of capital suggests improving operational efficiency and a potentially effective capital allocation strategy. The company appears to be generating more revenue from the same or even a decreasing level of invested capital, which is a positive indicator of financial performance.
Effective Cash Tax Rate (CTR)
Uber Technologies Inc., CTR calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | ||||||
| Add: Cash operating taxes2 | ||||||
| Net operating profit before taxes (NOPBT) | ||||||
| Tax Rate | ||||||
| CTR3 | ||||||
| Benchmarks | ||||||
| CTR, Competitors4 | ||||||
| FedEx Corp. | ||||||
| Union Pacific Corp. | ||||||
| United Airlines Holdings Inc. | ||||||
| United Parcel Service Inc. | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2025 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × ÷ =
4 Click competitor name to see calculations.
The effective cash tax rate (CTR) exhibits variability over the observed period. Initial values are unavailable for 2021 and 2022, but a discernible trend emerges from 2023 onwards. The analysis focuses on the relationship between cash operating taxes and net operating profit before taxes to understand the fluctuations in this rate.
- Effective Cash Tax Rate (CTR) Trend
- In 2023, the CTR registered at 9.17%. This decreased to 6.26% in 2024, representing a decline of approximately 2.91 percentage points. A subsequent increase is observed in 2025, with the CTR rising to 7.05%. This indicates a moderate recovery from the 2024 low, but remains below the 2023 level.
- Relationship to Underlying Components
- The CTR is calculated based on cash operating taxes and net operating profit before taxes. The significant fluctuation in net operating profit before taxes, moving from negative values in 2021 and 2022 to positive values in subsequent years, heavily influences the CTR. The initial negative NOPBT values preclude a meaningful CTR calculation for those years. The relatively stable cash operating taxes, ranging from US$242 million to US$391 million, suggest that changes in the CTR are primarily driven by changes in profitability.
The observed increase in CTR from 2024 to 2025, coupled with increasing net operating profit before taxes, suggests a potential increase in taxable income and a corresponding rise in cash tax payments. Further investigation into the specific tax jurisdictions and applicable tax laws would be necessary to fully understand the drivers behind these fluctuations.
- Potential Considerations
- The CTR is a non-GAAP measure and may not be directly comparable to statutory tax rates. The absence of CTR values for 2021 and 2022 limits the scope of historical trend analysis. The company’s utilization of tax credits, deductions, or loss carryforwards could also impact the observed CTR.