Uber Technologies Inc. (NYSE:UBER)

Receivables Turnover

The receivables turnover ratio shows an initially decreasing trend from 10.38 in 2020 to 7.16 in 2021, indicating slower collection of receivables during that period. However, this ratio significantly improved in subsequent years, rising to 11.47 in 2022, slightly decreasing to 10.95 in 2023, and then increasing again to 13.19 in 2024. This overall upward trend after 2021 suggests enhanced efficiency in collecting outstanding receivables over the latest periods.

Payables Turnover

The payables turnover ratio demonstrates considerable volatility but an overall increasing trend. From 21.93 in 2020, it declined sharply to 10.87 in 2021. Subsequently, the ratio increased substantially to 27 in 2022 and continued rising to 28.43 in 2023 and 31.06 in 2024. This pattern implies progressively faster payment of payables after 2021, reflecting either improved liquidity management or changes in creditor payment terms.

Working Capital Turnover

The working capital turnover ratio data is incomplete for 2021. However, it shows a remarkably high value of 80.5 in 2022, followed by a reduction to 20.23 in 2023, and a subsequent increase to 57.19 in 2024. The substantial fluctuations indicate volatile utilization of working capital. The peak in 2022 suggests exceptionally high efficiency in generating sales from working capital, while the subsequent declines and rises point to variable operational efficiency or changes in working capital structure.

Average Receivable Collection Period

The average receivable collection period increased from 35 days in 2020 to a peak of 51 days in 2021, indicating slower cash collections during this time. Subsequently, it improved steadily, declining to 32 days in 2022, maintaining close to this level at 33 days in 2023, and further reducing to 28 days in 2024. This trend aligns with the improvement observed in receivables turnover, highlighting enhanced efficiency in managing receivables after 2021.

Average Payables Payment Period

The average payables payment period nearly doubled from 17 days in 2020 to 34 days in 2021, suggesting extended payment terms or delayed payments in that year. However, from 2021 onwards, it consistently decreased to 14 days in 2022, then to 13 days in 2023, and further to 12 days in 2024. This decline corresponds with the increasing payables turnover ratio and points to a trend of faster payments to suppliers in the recent periods.

Revenue

The revenue exhibited a consistent upward trend from 2020 through 2024. Starting at US$11,139 million in 2020, revenue increased significantly to US$17,455 million in 2021, followed by a substantial jump to US$31,877 million in 2022. Growth continued through 2023 and 2024, reaching US$37,281 million and US$43,978 million respectively. This indicates strong and accelerating top-line expansion over the five-year period.

Accounts receivable, net of allowance

The net accounts receivable balance also increased steadily over the observed years. Beginning at US$1,073 million in 2020, it grew markedly to US$2,439 million in 2021, then to US$2,779 million in 2022. The upward trend persisted, with balances of US$3,404 million in 2023 and US$3,333 million in 2024. Despite the slight decrease observed in 2024 compared to the previous year, the overall trajectory shows growth in receivables, which correlates with the rising revenue figures.

Receivables turnover

The receivables turnover ratio showed variability but an overall improvement over time. It declined sharply from 10.38 times in 2020 to 7.16 times in 2021, suggesting a slower collection of receivables during that year. Subsequently, the ratio recovered robustly to 11.47 times in 2022, and maintained relatively high levels of 10.95 times in 2023 and 13.19 times in 2024. The strong increase by 2024 implies enhanced efficiency in collecting receivables relative to credit sales, which is favorable from a liquidity perspective.

The data reveals notable trends and fluctuations in the company's financial metrics over the five-year period ending on December 31, 2024.

Cost of Revenue, Exclusive of Depreciation and Amortization

This expense exhibits a consistent and substantial upward trajectory. It increased from $5,154 million in 2020 to $9,351 million in 2021, nearly doubling. This growth accelerated further to $19,659 million in 2022, followed by a steady rise to $22,457 million in 2023 and $26,651 million in 2024. The increases year-over-year suggest expanding operational activities or rising costs associated with revenue generation, indicating heightened scale or complexity in business operations.

Accounts Payable

The accounts payable balance shows more volatility compared to cost of revenue. Starting at $235 million in 2020, it surged significantly to $860 million in 2021, then declined to $728 million in 2022. Subsequently, it rose modestly to $790 million in 2023 and further to $858 million in 2024. Despite fluctuations, the overall pattern reflects a higher level of liabilities to suppliers, possibly due to changes in credit terms or payment policies aligned with the company’s growth.

Payables Turnover Ratio

The payables turnover ratio exhibits an irregular pattern with significant variation. The ratio was 21.93 in 2020 before dropping sharply to 10.87 in 2021. Subsequently, it rebounded to 27.00 in 2022 and increased incrementally to 28.43 in 2023 and 31.06 in 2024. This ratio measures the efficiency of the company in paying its suppliers, where a higher number suggests faster payment cycles. The initial decrease in 2021 followed by a continuous increase indicates a period of slower payments succeeded by improvements in payment practices over the following years.

Overall, the financial data points to a period of rapid growth in revenue-related costs accompanied by expanding payables in nominal terms. The efficiency in managing payable accounts appeared to deteriorate temporarily in 2021 but improved steadily thereafter. These patterns suggest adjustments in operational scale and supplier payment policies as the company evolves.

Working Capital

The working capital experienced significant fluctuations over the five-year period. It started at a positive value of 3017 million USD at the end of 2020, declined sharply to a negative position of -205 million USD by the end of 2021, then recovered to 396 million USD in 2022. This positive trend continued with a substantial increase to 1843 million USD in 2023, however, it decreased again to 769 million USD by the end of 2024. These variations indicate periods of liquidity stress followed by recovery phases, with the most considerable improvement occurring between 2022 and 2023.

Revenue

Revenue demonstrated a consistent and strong upward trend throughout the period. Starting at 11,139 million USD in 2020, revenue surged by approximately 57% in 2021 to 17,455 million USD and then nearly doubled to 31,877 million USD in 2022. Growth continued in 2023 with revenue reaching 37,281 million USD, followed by a further increase to 43,978 million USD in 2024. This steady expansion highlights robust sales performance and increasing market penetration or operational scale over time.

Working Capital Turnover

Working capital turnover showed marked volatility and irregular trends. The ratio began at 3.69 in 2020, was not reported for 2021, then surged dramatically to 80.5 in 2022. Subsequently, it declined to 20.23 in 2023 but rebounded again to 57.19 in 2024. These fluctuations could reflect changes in the efficiency with which the company utilizes its working capital to generate sales, influenced by the large variations in working capital levels observed during the same period.

Overall Insights

The company exhibited robust revenue growth alongside volatile working capital management. The negative working capital in 2021 suggests temporary liquidity challenges, yet the quick recovery in the subsequent years implies effective corrective measures. The high but inconsistent working capital turnover ratios suggest dynamic operational efficiency, potentially due to changing business strategies or market conditions. Maintaining stability in working capital while sustaining increasing revenue may be a focus area to optimize financial health going forward.

The financial data reveals notable trends in the receivables management over the analyzed period.

Receivables Turnover Ratio

The ratio experienced a decline from 10.38 in 2020 to 7.16 in 2021, indicating a slower rate of collecting receivables during that year. However, this trend reversed in subsequent years with the turnover improving to 11.47 in 2022, marginally decreasing to 10.95 in 2023, and then reaching a higher level of 13.19 in 2024. This demonstrates an overall enhancement in the efficiency with which the company converts its receivables to cash towards the end of the period.

Average Receivable Collection Period

The average number of days to collect receivables increased significantly from 35 days in 2020 to 51 days in 2021, suggesting a lengthening in the collection cycle. Following 2021, there is a consistent downward trend, with the collection period decreasing to 32 days in 2022, slightly rising to 33 days in 2023, and then falling further to 28 days in 2024. This trend mirrors the improvements seen in the receivables turnover ratio, implying improved liquidity and credit management.

Overall, the data indicates a temporary decline in receivables collection efficiency in 2021, followed by a strong recovery and subsequent improvement through to 2024. The company appears to have enhanced its credit and collection policies, resulting in faster cash conversion cycles and potentially stronger working capital management in the later years.

The presented financial data reveals a dynamic trend in the management of accounts payable over the evaluated periods.

Payables Turnover Ratio

The payables turnover ratio fluctuated initially, decreasing from 21.93 in 2020 to 10.87 in 2021, indicating a slower rate of payment to suppliers during that year. However, this ratio experienced a marked recovery and growth thereafter, increasing to 27.00 in 2022, 28.43 in 2023, and further to 31.06 in 2024. This upward trend suggests an enhanced efficiency in supplier payment practices, implying that the company is settling its payables more rapidly over time.

Average Payables Payment Period (in days)

The average payment period shows a contrasting pattern to the payables turnover ratio, as expected given their inverse relationship. The period lengthened significantly from 17 days in 2020 to 34 days in 2021, implying delayed payments. Following this peak, the payment period shortened consistently each year, falling to 14 days in 2022, then to 13 days in 2023, and finally to 12 days in 2024. This improvement confirms a trend toward more prompt payment cycles, enhancing supplier relations and potentially strengthening credit terms.

Overall, the data indicates a temporary slowdown in supplier payments during 2021, followed by a consistent and improving efficiency in accounts payable management through 2024. This improvement in turnover ratio and reduction in payment period suggests stronger operational discipline and better cash flow management in recent years.