Stock Analysis on Net

Uber Technologies Inc. (NYSE:UBER)

Financial Reporting Quality: Aggregate Accruals

Microsoft Excel

Earnings can be decomposed into cash and accrual components. The accrual component (aggregate accruals) has been found to have less persistence than the cash component, and therefore (1) earnings with higher accrual component are less persistent than earnings with smaller accrual component, all else equal; and (2) the cash component of earnings should receive a higher weighting evaluating company performance.


Balance-Sheet-Based Accruals Ratio

Uber Technologies Inc., balance sheet computation of aggregate accruals

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Operating Assets
Total assets 51,244 38,699 32,109 38,774 33,252
Less: Cash and cash equivalents 5,893 4,680 4,208 4,295 5,647
Less: Short-term investments 1,084 727 103 1,180
Less: Restricted cash and cash equivalents 545 805 680 631 250
Operating assets 43,722 32,487 27,118 33,848 26,175
Operating Liabilities
Total liabilities 28,768 26,017 23,605 23,425 19,498
Less: Current portion of long-term debt 1,150 25 27 27 27
Less: Finance leases liabilities, current 136 156 115 191 177
Less: Long-term debt, net of current portion 8,347 9,459 9,265 9,276 7,560
Less: Finance leases liabilities, non-current 174 322 284 43 120
Operating liabilities 18,961 16,055 13,914 13,888 11,614
 
Net operating assets1 24,761 16,432 13,204 19,960 14,561
Balance-sheet-based aggregate accruals2 8,329 3,228 (6,756) 5,399
Financial Ratio
Balance-sheet-based accruals ratio3 40.44% 21.78% -40.74% 31.28%
Benchmarks
Balance-Sheet-Based Accruals Ratio, Competitors4
FedEx Corp. 3.63% 3.85% 0.91% 6.93% 7.01%
Union Pacific Corp. 1.61% 3.95% 3.63% 2.46%
United Airlines Holdings Inc. 10.38% 7.63% -4.50% -1.08%
United Parcel Service Inc. 5.00% 21.85% 29.53% -18.06%
Balance-Sheet-Based Accruals Ratio, Sector
Transportation 0.00% 6.81% 2.07% 10.50%
Balance-Sheet-Based Accruals Ratio, Industry
Industrials 0.00% -1.31% 0.54% 3.35%

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 2024 Calculation
Net operating assets = Operating assets – Operating liabilities
= 43,72218,961 = 24,761

2 2024 Calculation
Balance-sheet-based aggregate accruals = Net operating assets2024 – Net operating assets2023
= 24,76116,432 = 8,329

3 2024 Calculation
Balance-sheet-based accruals ratio = 100 × Balance-sheet-based aggregate accruals ÷ Avg. net operating assets
= 100 × 8,329 ÷ [(24,761 + 16,432) ÷ 2] = 40.44%

4 Click competitor name to see calculations.

Financial ratio Description The company
Balance-sheet-based accruals ratio Ratio is found by dividing balance-sheet-based aggregate accruals by average net operating assets. Using the balance-sheet-based accruals ratio, Uber Technologies Inc. deteriorated earnings quality from 2023 to 2024.

Cash-Flow-Statement-Based Accruals Ratio

Uber Technologies Inc., cash flow statement computation of aggregate accruals

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income (loss) attributable to Uber Technologies, Inc. 9,856 1,887 (9,141) (496) (6,768)
Less: Net cash provided by (used in) operating activities 7,137 3,585 642 (445) (2,745)
Less: Net cash used in investing activities (3,177) (3,226) (1,637) (1,201) (2,869)
Cash-flow-statement-based aggregate accruals 5,896 1,528 (8,146) 1,150 (1,154)
Financial Ratio
Cash-flow-statement-based accruals ratio1 28.63% 10.31% -49.13% 6.66%
Benchmarks
Cash-Flow-Statement-Based Accruals Ratio, Competitors2
FedEx Corp. 3.01% 3.32% 2.12% 3.01% 5.95%
Union Pacific Corp. 1.55% 3.67% 2.53% 0.47%
United Airlines Holdings Inc. 7.87% 40.39% -11.39% -14.03%
United Parcel Service Inc. 11.02% 17.11% 7.63% -18.35%
Cash-Flow-Statement-Based Accruals Ratio, Sector
Transportation 0.00% 6.39% 4.85% 1.29%
Cash-Flow-Statement-Based Accruals Ratio, Industry
Industrials 0.00% 1.68% -2.26% -8.85%

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 2024 Calculation
Cash-flow-statement-based accruals ratio = 100 × Cash-flow-statement-based aggregate accruals ÷ Avg. net operating assets
= 100 × 5,896 ÷ [(24,761 + 16,432) ÷ 2] = 28.63%

2 Click competitor name to see calculations.

Financial ratio Description The company
Cash-flow-statement-based accruals ratio Ratio is found by dividing cash-flow-statement-based aggregate accruals by average net operating assets. Using the cash-flow-statement-based accruals ratio, Uber Technologies Inc. deteriorated earnings quality from 2023 to 2024.