DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data
Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.
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- Statement of Comprehensive Income
- Balance Sheet: Assets
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Two-Component Disaggregation of ROE
Uber Technologies Inc., decomposition of ROE (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
- Return on Assets (ROA)
- The Return on Assets fluctuated significantly over the observed quarters. Initially, ROA was negative, starting at -11.37% and improving to -1.28% by the end of 2021. However, it deteriorated sharply in 2022, reaching a low of -32.45% in June. This was followed by a gradual recovery phase beginning in late 2022 and continuing through 2023 and 2024. From March 2023 onwards, ROA turned positive and showed consistent improvement, peaking at 26.27% by March 2025. This trend indicates an initial period of asset inefficiency or losses, followed by a marked turnaround and enhanced profitability on asset investments.
- Financial Leverage
- Financial leverage increased markedly from early 2021 through 2022, peaking at nearly 5.0 in September 2022. This upward movement implies a growing reliance on debt financing or increased liabilities relative to equity during this period. Following this peak, leverage steadily decreased through 2023 and 2024, dropping to approximately 2.25 by March 2025. The decline in leverage suggests a strategic effort to reduce debt burden or improve the equity base, thereby lowering financial risk.
- Return on Equity (ROE)
- ROE exhibited patterns similar to ROA but with greater volatility and magnitude, reflecting the amplifying effect of financial leverage on equity returns. Initially negative and deepening through 2022, ROE reached an extreme low of -151.07% in mid-2022. After this trough, the metric showed a strong recovery from late 2022 onwards, turning positive in mid-2023 and advancing steadily to reach nearly 60% by early 2025. This trajectory indicates initial substantial equity losses followed by significant profitability improvement, which outpaced improvements in ROA due to decreased leverage and enhanced operational performance.
Three-Component Disaggregation of ROE
Uber Technologies Inc., decomposition of ROE (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
- Net Profit Margin
- The net profit margin experienced significant volatility throughout the observed periods. It began with substantial negative values in early 2021, reaching approximately -36.5%, followed by a notable improvement toward the end of that year, nearing -2.84%. However, the margin reverted to negative territory during 2022, with the lowest around -39.39%, before progressively recovering against the trend in late 2022 and early 2023. From 2023 onwards, a steady upward trend is evident, culminating in a strong positive margin above 30% by early 2025, indicating improving profitability and operational efficiency over time.
- Asset Turnover
- The asset turnover ratio exhibited a clear upward trend from 0.31 at the start of 2021 to a peak close to 1.04 in the first quarter of 2023. This indicates increasing efficiency in generating sales from the company's assets during this period. After reaching this peak, the ratio shows a gradual decline throughout 2023 and into 2025, settling just below 0.80 by the first quarter of 2025. This tapering off may suggest diminishing asset utilization efficiency or changes in asset base relative to revenue generation in recent periods.
- Financial Leverage
- The financial leverage ratio rose significantly from 2.55 in the first quarter of 2021 to a peak near 4.98 in the third quarter of 2022, reflecting an increased reliance on debt or other liabilities relative to equity. Following this peak, leverage consistently decreased, reaching approximately 2.25 by early 2025. This reduction implies a strategic move towards a more conservative capital structure, potentially reducing financial risk and improving solvency over the later periods.
- Return on Equity (ROE)
- ROE followed a highly volatile pattern, mirroring the trends observed in net profit margin and leverage. Initially, ROE was deeply negative, notably plummeting below -140% in mid to late 2022, indicating substantial losses or high negative return relative to shareholder equity. Starting early 2023, a marked recovery is visible, crossing into positive territory and improving significantly through 2023 and 2024. By 2025, ROE achieves impressive levels above 55%, demonstrating a strong return to shareholders and indicating enhanced profitability combined with the effects of reduced leverage and improved operational efficiency.
Five-Component Disaggregation of ROE
Uber Technologies Inc., decomposition of ROE (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
- EBIT Margin
- The EBIT margin exhibits a highly variable pattern from March 2021 to March 2025. Initially, margins are negative, indicating operational losses, with a low point near -38.73% in mid-2022. From late 2022 onward, a steady recovery is observed, transitioning to positive margins by early 2023, peaking above 14% near the end of 2024, then slightly declining but remaining solid throughout early 2025. This suggests improving operational efficiency and profitability over the observed period.
- Asset Turnover
- Asset turnover ratios show a growth trend from 0.31 in March 2021 to a peak close to 1.04 in early 2023, indicating increased efficiency in using assets to generate revenue. However, after this peak, a gradual decline occurs, settling around 0.78 by March 2025. This decline may indicate diminishing efficiency or increased asset base not matched by proportional revenue growth in the latter phases.
- Financial Leverage
- Financial leverage rises significantly from approximately 2.55 in early 2021 to a high of nearly 4.98 in late 2022, suggesting increased reliance on debt or other liabilities to finance assets. Subsequently, leverage decreases steadily, falling below 2.5 toward March 2025, reflecting a deleveraging process or asset base reduction relative to equity, which may indicate a strategy to reduce financial risk.
- Return on Equity (ROE)
- ROE is deeply negative in the first two years, with extreme lows exceeding -150% mid-2022, indicating substantial shareholder value destruction. Beginning in late 2022 and moving into 2023, ROE recovers into positive territory, reaching nearly 60% by early 2025. This pronounced turnaround reflects improving profitability, effective capital use, and possibly successful operational and financial restructuring.
- Tax Burden
- Tax burden values are sparse early on but become available from March 2023. Ratios fluctuate between approximately 0.88 and 0.93, with a notable spike to 2.41 in early 2025. The ratios mostly close to or below 1 suggest stable or moderate tax rates relative to pre-tax income, while the spike may indicate extraordinary tax events or accounting adjustments impacting net income in that period.
- Interest Burden
- Interest burden data begins near -0.85 (negative) in mid-2023, quickly normalizing to positive values around 0.6-0.9 in subsequent quarters. The initial negative value may represent unusual financing costs or data irregularity. Subsequent stable positive ratios below 1 imply that interest expenses are reducing pre-tax profit, though the gradual increase points toward improving coverage of interest obligations.
Two-Component Disaggregation of ROA
Uber Technologies Inc., decomposition of ROA (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
- Net Profit Margin
- The net profit margin exhibits notable volatility over the periods analyzed. Initially, there is a significant loss indicated by a very negative margin of -36.5%. By the end of 2021, the losses had reduced considerably, approaching near breakeven levels with margins fluctuating around -2.84%. However, the year 2022 shows a worsening trend, with margins declining again to approximately -39.39%, reflecting increased challenges or costs. Starting in early 2023, there is a clear positive turnaround, as margins move into positive territory and progressively improve each quarter. This upward trajectory culminates by early 2025 with a robust margin exceeding 30%, indicating a strong enhancement in profitability.
- Asset Turnover
- The asset turnover ratio demonstrates a general upward trend from 0.31 initially to a peak near 1.04 around the first quarter of 2023, suggesting increasing efficiency in generating revenue from assets. After peaking, the ratio exhibits a gradual decline and stabilizes around 0.85 to 0.89 in subsequent periods. This tapering off could imply that the growth in asset utilization efficiency faced certain headwinds or diminishing returns after the initial rapid improvement phase.
- Return on Assets (ROA)
- The ROA mirrors the patterns observed in the net profit margin and asset turnover. Initially negative and declining sharply in 2022, reaching lows around -32.45%, the ROA reflects substantial asset-based losses during this period. Beginning in early 2023, ROA improves steadily, transitioning from negative to positive values and continually rising through to 2025. The peak levels in 2025 surpass 26%, indicating that the company not only reversed prior losses but also enhanced the profitability generated from its asset base significantly by the end of the period analyzed.
- Overall Insights
- The financial indicators collectively show a trajectory of initial losses and inefficiencies that persist into early 2022, followed by a period of operational improvements and enhanced profitability throughout 2023 and beyond. The recovery in net profit margin and ROA, alongside the previously achieved high asset turnover, suggest successful strategies to optimize cost structures and asset utilization. Despite a slight softness in asset turnover ratios after their peak, the continued rise in profitability metrics indicates strengthened financial performance and possibly better market positioning or operational improvements in the later periods.
Four-Component Disaggregation of ROA
Uber Technologies Inc., decomposition of ROA (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
- Tax Burden
- The tax burden ratio exhibits limited data in earlier periods but shows a fluctuating pattern in the most recent quarters, increasing from 0.9 to above 2.5 in some quarters, indicating variability in tax expenses relative to pre-tax earnings. This suggests periods of either increased tax liabilities or changes in earnings before tax impacting the ratio.
- Interest Burden
- Interest burden values, available in the later periods, demonstrate a notable shift from a negative ratio of -0.85 to stable positive ratios around 0.89 to 0.93. This trend indicates an initial period of high interest expense burden transitioning into more controlled and consistent interest expenses relative to EBIT.
- EBIT Margin
- The EBIT margin has shown significant volatility over the observed quarters. Early data reveal negative margins, with the lowest around -38.73%, indicating consistent operating losses. However, from early 2023 onwards, there is a clear upward trend with margins improving into positive territory, reaching peaks above 14%, signaling improving operational profitability and cost management.
- Asset Turnover
- Asset turnover exhibits a strengthening trend from 0.31 to nearly 1.04 by March 2023, suggesting enhanced efficiency in generating sales from assets. Post-March 2023, turnover slightly declines but remains relatively high, around 0.85 to 0.97, indicating sustained asset utilization effectiveness despite minor fluctuations.
- Return on Assets (ROA)
- ROA reflects a trajectory similar to EBIT margin, showing deep negative returns in the earlier years with values reaching as low as -32.45%. This improved gradually to positive returns from mid-2023, increasing substantially up to around 26.27% by early 2025. The consistent increase in ROA underscores growing overall profitability and efficient asset use, aligning with improved operational results.
Disaggregation of Net Profit Margin
Uber Technologies Inc., decomposition of net profit margin ratio (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
- Tax Burden
- The Tax Burden ratio exhibits no recorded data until the first quarter of 2023. From that point, the ratio fluctuates moderately around values slightly below or above 1.0, with a noticeable spike to 2.41 in the first quarter of 2025, followed by a gradual decrease, yet remaining substantially above 1.0 through the subsequent quarters. This suggests increasing tax burden or changes in tax implications impacting profitability in recent periods.
- Interest Burden
- Interest Burden data starts from the fourth quarter of 2022, displaying an initial negative value of -0.85, which transitions to positive values from the first quarter of 2023 onwards. Since then, the ratio demonstrates a steady increase, rising from 0.63 to 0.93 by the third quarter of 2025. This progression indicates improving financial costs management or decreasing interest expense relative to earnings before interest and taxes over time.
- EBIT Margin
- The EBIT Margin shows significant volatility in the first eight quarters (Q1 2021 through Q4 2022), with steep negative values reaching as low as -38.73%. This reflects operational challenges and negative operating income during that period. Starting from Q1 2023, there is a marked recovery trend, with the margin turning positive and steadily increasing from 0.94% to a peak of 14.78% in the third quarter of 2025. The margin slightly dips to 13.65% thereafter, indicating stabilization at improved profitability levels.
- Net Profit Margin
- Net Profit Margin also follows a pattern of initial losses throughout the early quarters, reflecting negative profitability with its lowest point around -39.39% in Q2 2022. Beginning Q1 2023, the margin starts to recover, crossing into positive territory by Q3 2023 and exhibiting a strong upward trajectory thereafter. The margin reaches a high of 33.54% in Q1 2025, suggesting significant net income growth relative to revenue. Though some fluctuations occur, the overall trend points toward enhanced profitability and better cost control in recent periods.
- Summary of Trends
- The data reveals a transition from challenging financial conditions with negative profitability and poor margins in the early periods, to a phase of recovery and growth starting in 2023. Both operating and net profitability metrics improve markedly, accompanied by better management of interest expenses. The unusual behavior of the Tax Burden ratio in the most recent periods merits attention, as it may signal changes in tax strategy or exceptional tax events impacting net outcomes.