Uber Technologies Inc. (NYSE:UBER)

The financial ratios reveal several notable trends across the periods analyzed.

Receivables Turnover

The receivables turnover ratio displays a fluctuating but generally increasing trend from a low of 7.16 in March 2022 to a peak of 13.59 in June 2023, before experiencing a slight decline towards early 2025. The early part of the data, from March 2020 through December 2020, shows values mainly in the 10 to 11 range, suggesting relatively stable collection efficiency during that period. The higher turnover rates in 2023 could indicate improved effectiveness in collecting receivables.

Payables Turnover

The payables turnover ratio varies markedly, with values ranging from a low of 10.87 in March 2022 to a high exceeding 32 in late 2024. There is a distinct volatility in the middle periods, especially during 2021, where the ratio fluctuates widely. Generally, the trend after 2022 shows an upward movement, implying a quicker payment of payables over time, which may reflect stronger supplier relationships or improved cash management practices.

Working Capital Turnover

This ratio demonstrates extreme volatility throughout the periods, with some very high values such as 1646.62 and 129.39 in mid-2021 and late 2020, respectively, and several missing data points. Outside these anomalies, the working capital turnover tends to fluctuate significantly, ranging from 9.33 to 83.47 in most recent quarters. The irregular pattern suggests considerable variability in how efficiently working capital is being employed, potentially due to changes in asset base or operational shifts.

Average Receivable Collection Period

The average collection period fluctuates between a higher range of 35-36 days around 2020 and a lower range of approximately 27-30 days in 2023, indicating some improvement in collections over time. The longest collection period occurs in March 2022 at 51 days, which is an outlier compared to other quarters. Generally, the downward trend in the average collection days reflects enhanced efficiency in converting receivables to cash.

Average Payables Payment Period

The average payment period shows a somewhat irregular pattern with a peak at 34 days in March 2022, followed by a notable decline to around 11-13 days during the remainder of the analyzed period. This shortening of payment periods suggests an acceleration in settling payables, corresponding with the increasing payables turnover ratio observed.

Overall, the data suggests a trend towards more efficient management of receivables and payables in recent years, despite some volatility and exceptional outliers particularly in working capital turnover and payment periods. The improvements in collection and payment cycles point toward better liquidity management and operational efficiency.

The quarterly financial data reveals several notable trends in revenue, accounts receivable, and receivables turnover over the examined periods.

Revenue

Revenue exhibited significant fluctuations and growth throughout the periods. It decreased sharply from 3,248 million USD in the first quarter of 2020 to 1,913 million USD in the second quarter of 2020. Subsequently, a recovery phase is observable, with revenue increasing steadily to reach 5,778 million USD by the fourth quarter of 2021. This growth trend continued with revenue surpassing 11,000 million USD in the first quarter of 2025, peaking at 11,959 million USD in the fourth quarter of 2024. This indicates strong overall growth after initial pandemic-related disruptions.

Accounts Receivable, Net of Allowance

Accounts receivable follow an upward trajectory with some variability. Starting at 683 million USD in the first quarter of 2020, it rose steadily with a notable spike from 1,333 million USD at the third quarter of 2021 to 2,439 million USD in the fourth quarter of 2021. After this, the accounts receivable level remained elevated, fluctuating around the 2,400 to 3,700 million USD range through 2024 before showing a modest decrease to 3,489 million USD in the first quarter of 2025. This growth in receivables, especially the sharp increase at the end of 2021, suggests increasing credit extended to customers or slower collections.

Receivables Turnover

Receivables turnover demonstrates variability with an overall improving trend after some dips. Early in the timeline, turnover was between 10.38 and 11.13, indicating moderate efficiency in collecting receivables relative to revenue. At the end of 2021, turnover dropped to 7.16, reflecting slower receivables collection or rising receivables balances compared to sales. However, post this decline, turnover steadily improved, reaching approximately 13.19 in the fourth quarter of 2024 and just slightly below that in the following quarter. This improvement suggests enhanced collection efficiency or faster conversion of receivables into cash in the most recent periods.

In summary, the data shows strong revenue growth after an initial contraction, accompanied by an increase in accounts receivable levels with some large jumps likely tied to business scaling or changes in credit terms. While collection efficiency suffered temporarily around late 2021, it recovered significantly, indicating management's successful efforts in improving working capital management over time.

The cost of revenue, exclusive of depreciation and amortization, shows a general upward trend over the observed periods. Starting at 1,491 million US dollars in March 2020, this figure initially declines to 924 million in June 2020, then gradually increases with some fluctuations, reaching 7,234 million by December 2024. There is a notable acceleration in growth from early 2021 onward, particularly from March 2022 to December 2024, where the cost steadily climbs above 5,000 million and peaks near 7,234 million before slightly decreasing to 6,937 million in March 2025.

Accounts payable exhibit a more variable pattern. Initially, values range from 215 million in March 2020 to a peak of 860 million in December 2020. Post-2020, the balances fluctuate moderately between approximately 700 and 860 million US dollars, without demonstrating a clear upward or downward trend. The figures slightly decrease at times, such as from 860 million in December 2020 to 728 million in December 2022, then rise again to a high of around 873 million by March 2025.

The payables turnover ratio, available beginning in September 2020, presents significant volatility. Starting at 21.93, it increases and decreases sharply across quarters, with a low of 10.87 in March 2021 and a high peak of 32.37 in September 2024. From 2022 onwards, the ratio generally remains higher than in 2021, fluctuating mostly above 27, which suggests an improvement in the rate at which payables are being settled. The ratio's sustained elevation above 30 in multiple quarters from 2023 through early 2025 points to increased efficiency or faster payment cycles during this period.

Overall, the cost of revenue is consistently growing, indicating rising expenses associated with operations. Conversely, accounts payable balances remain relatively stable with moderate fluctuations, implying steady credit terms or payment practices. The increasing trend and higher volatility in payables turnover ratio in recent quarters suggest more dynamic management of short-term liabilities, potentially reflecting changes in supplier payment policies or operational cash flow optimization efforts.

Cost of Revenue Trend

Upward progression from 924 million to over 7,000 million, signalling increased operational expense over time.

Accounts Payable Pattern

Moderate fluctuations without clear directional trend, stabilizing mostly between 700 and 860 million.

Payables Turnover Ratio

Volatile but rising trend, indicating accelerating payment frequency and improved short-term liability management.

The financial data exhibit diverse trends in working capital, revenue, and working capital turnover over the reported periods. A detailed examination of these metrics provides insights into operational efficiency and revenue performance.

Working Capital

Working capital shows significant fluctuations over the periods presented. Initially, there is a decline from $4,483 million in March 2020 to a low of $99 million by June 2021. This is followed by a recovery phase, with working capital reaching $2,029 million in June 2023.

Subsequently, working capital values show some volatility, peaking at $4,496 million in September 2024 before returning to a lower value of $237 million by March 2025. The variability suggests challenges in managing short-term assets and liabilities consistently across quarters.

Revenue

Revenue demonstrates a strong upward trajectory overall, starting at $3,248 million in March 2020 and generally increasing quarter-over-quarter. There is a marked acceleration in revenue growth beginning in mid-2020, with periodic incremental gains that culminate at a peak of $11,959 million in March 2025.

The sustained revenue expansion suggests improved market penetration or demand for the company’s services during the analyzed timeframe, despite economic uncertainties that may have influenced working capital fluctuations.

Working Capital Turnover

Working capital turnover ratios are inconsistent and show extraordinary values at certain points, such as 129.39 in September 2021 and an exceptionally high 1,646.62 in March 2022. These spikes likely result from very low or negative working capital figures, which can distort the turnover calculation.

After these outliers, the turnover ratio exhibits a decline but remains elevated relative to typical industry benchmarks, ranging from around 9.33 to 83.47 in subsequent periods. This suggests a tendency for more efficient revenue generation relative to the working capital at certain times, although the volatility indicates potential operational inefficiencies or changing capital structures.

Overall Analysis

The data reveal a company experiencing rapid revenue growth alongside unstable working capital management. The sharp fluctuations and occasional negative working capital highlight potential liquidity management challenges. Meanwhile, the robust increase in revenue reflects strong demand and possibly operational scaling.

The irregular working capital turnover magnitudes underline that working capital position’s volatility significantly impacts performance metrics, possibly indicating periods of strained liquidity or aggressive investment strategies. A focus on stabilizing working capital could enhance financial stability and provide a clearer picture of operational efficiency.

Receivables Turnover

The receivables turnover ratio shows a fluctuating trend over the analyzed quarters. Beginning from a value around 10.38 in the first available quarter, it slightly declined to 10.04 and then increased to a peak of 11.77 by the end of 2020. Subsequently, there was a notable decline to 7.16 in the first quarter of 2022, indicating slower collection of receivables during that period. This was followed by a recovery phase, with the ratio rising steadily and reaching a high of 13.59 in mid-2023. After peaking, the ratio moderated slightly but remained relatively strong, ending near 13.01 by the first quarter of 2025. Overall, the receivables turnover ratio suggests periods of both slower and faster collections, with a general improvement and stabilization in recent quarters.

Average Receivable Collection Period

The average collection period exhibits an inverse relationship with the receivables turnover, as expected. Initially stable at around 35 to 33 days, this metric increased sharply to 51 days in the first quarter of 2022, coinciding with the lowest receivables turnover ration during the same timeframe. After this peak, the collection period decreased significantly, reaching a low of 27–28 days through mid-2023, indicating improved efficiency in collecting receivables. Towards the most recent quarters, the period slightly increased but remained relatively low, oscillating between 28 and 35 days. This trend echoes the receivables turnover pattern, indicating enhanced collection efficiency following a period of slowdown.

Insights

The data reveals a cyclical pattern in receivables management efficiency. There was a deterioration around early 2022 reflected by increased collection periods and decreased turnover ratios, potentially signaling challenges in cash flow or credit management during that time. However, significant improvements followed, suggesting effective remedial actions or favorable changes in operational or market conditions. The latest data points suggest sustained better performance in receivable collections compared to earlier periods, which may positively impact the company’s liquidity and working capital management.

Payables Turnover Ratio

The payables turnover ratio exhibits considerable fluctuations over the period analyzed. Initially, the data is unavailable for the first few quarters, but starting from the quarter ending March 31, 2020, the ratio shows a fluctuating trend. The ratio peaks at 30.63 in the quarter ending September 30, 2023, followed by a moderate decline and stabilization, maintaining values around 31 in the following quarters. This suggests variation in the frequency with which payables are settled, with periods of faster payment cycles interspersed with slower ones. The general trend from 2022 onward indicates an improvement in turnover efficiency, reaching higher ratios compared to earlier years.

Average Payables Payment Period (Days)

The average payables payment period inversely mirrors the payables turnover ratio, ranging from a high of 34 days in March 31, 2022, declining steadily thereafter. From mid-2022 onwards, there is a consistent reduction in the payment period, stabilizing around 11 to 13 days in the most recent quarters of 2024 and early 2025. This reduction denotes an acceleration in the payment cycle, indicating that payables are being settled more quickly as time progresses.

Overall Insights

The analysis of both ratios reveals an improving payables management efficiency. Initially, the company experienced longer payable periods and lower turnover ratios, indicating slower payments. However, over time, the trend clearly moves toward faster payment cycles, as seen in increasing turnover ratios and decreasing payment periods. This trend could reflect stronger liquidity management or improved supplier relations. The recent stability in both metrics also suggests the establishment of a consistent payables process.