Economic Value Added (EVA)
EVA is registered trademark of Stern Stewart.
Economic value added or economic profit is the difference between revenues and costs,where costs include not only expenses, but also cost of capital.
Economic Profit
Uber Technologies Inc., economic profit calculation
US$ in millions
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 Cost of capital. See details »
3 Invested capital. See details »
4 2025 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= 5,152 – 18.66% × 15,770 = 2,210
The analysis of economic value added reveals a significant financial turnaround between 2021 and 2025. The trajectory is characterized by a transition from substantial value destruction to consistent value creation, primarily driven by a sharp recovery in operational profitability.
- Net Operating Profit After Taxes (NOPAT)
- A volatile trend is observed in NOPAT, which reached a nadir in 2022 at negative 9,117 million USD. A pivotal shift occurred in 2023 when NOPAT turned positive at 2,401 million USD. This growth trend continued steadily through 2024 and 2025, ending the period at 5,152 million USD, indicating a strong improvement in core operational efficiency.
- Cost of Capital and Invested Capital
- The cost of capital remained relatively stable and high, fluctuating within a narrow range from 17.73% in 2021 to a peak of 18.99% in 2023, before settling at 18.66% in 2025. Invested capital exhibited a gradual decline from 16,078 million USD in 2021 to a low of 14,934 million USD in 2024, followed by a modest increase to 15,770 million USD in 2025, suggesting a period of capital optimization prior to renewed investment.
- Economic Profit Performance
- Economic profit mirrored the volatility of NOPAT, with a severe deficit of 12,037 million USD in 2022. A rapid convergence toward the break-even point is evident in 2023, where losses narrowed to 575 million USD. Positive economic profit was achieved in 2024 (919 million USD) and expanded further in 2025 to 2,210 million USD. This progression confirms that the return on invested capital has surpassed the hurdle rate, transitioning the entity into a phase of genuine wealth creation.
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Net Operating Profit after Taxes (NOPAT)
Uber Technologies Inc., NOPAT calculation
US$ in millions
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 Elimination of deferred tax expense. See details »
2 Addition of increase (decrease) in allowance for doubtful accounts.
3 Addition of increase (decrease) in restructuring and related charges accrual.
4 Addition of increase (decrease) in equity equivalents to net income (loss) attributable to Uber Technologies, Inc..
5 2025 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 1,559 × 6.60% = 103
6 2025 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 543 × 21.00% = 114
7 Addition of after taxes interest expense to net income (loss) attributable to Uber Technologies, Inc..
8 2025 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= 743 × 21.00% = 156
9 Elimination of after taxes investment income.
Net income attributable to Uber Technologies, Inc. and Net Operating Profit After Taxes (NOPAT) demonstrate significant fluctuations over the five-year period. Both metrics experienced substantial losses initially, followed by a period of increasing profitability.
- Net Income Trend
- Net income attributable to Uber Technologies, Inc. began with a loss of US$496 million in 2021. This loss expanded dramatically to US$9,141 million in 2022. A substantial improvement occurred in 2023, with net income turning positive at US$1,887 million. Further growth was observed in 2024 and 2025, reaching US$9,856 million and US$10,053 million, respectively. The trend indicates a recovery from significant losses to consistent profitability.
- NOPAT Trend
- NOPAT mirrored the trend observed in net income. In 2021, NOPAT registered a loss of US$819 million. This loss increased to US$9,117 million in 2022. Similar to net income, NOPAT became positive in 2023, reaching US$2,401 million. Continued growth was evident in subsequent years, with NOPAT increasing to US$3,752 million in 2024 and US$5,152 million in 2025. The pattern suggests a strengthening of operational profitability over time.
- Relationship between Net Income and NOPAT
- While both metrics move in the same direction, NOPAT consistently exceeds the absolute value of net income in the loss years (2021 and 2022). This suggests that non-operating items, such as interest expense or gains/losses on investments, significantly impacted net income during those periods. As profitability improves, the difference between NOPAT and net income narrows, indicating a greater contribution from core operations to overall profitability.
- Growth Rates
- The growth rate from 2022 to 2023 for both NOPAT and net income is substantial, representing a significant turnaround. The growth continues, albeit at a slower pace, from 2023 to 2025. This suggests that the initial recovery was particularly strong, followed by more moderate, sustained growth.
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Cash Operating Taxes
Uber Technologies Inc., cash operating taxes calculation
US$ in millions
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).
The provision for (benefit from) income taxes exhibits significant volatility over the observed period. Initially, a benefit was recognized in 2021 and 2022, followed by a substantial tax expense in 2023 and particularly in 2024, before decreasing in 2025, though remaining a significant expense. In contrast, cash operating taxes demonstrate a more stable, albeit modestly fluctuating, pattern.
- Provision for (benefit from) income taxes
- A benefit of US$492 million was recorded in 2021, decreasing to a benefit of US$181 million in 2022. This shifted dramatically to an expense of US$213 million in 2023. The largest change occurred between 2023 and 2024, with the expense increasing to US$5,758 million. While still an expense, this decreased to US$4,346 million in 2025. This volatility suggests potential changes in deferred tax assets/liabilities, tax loss carryforwards utilized, or changes in applicable tax rates.
- Cash operating taxes
- Cash operating taxes increased from US$319 million in 2021 to US$375 million in 2022, representing a moderate increase. A slight decrease to US$242 million was observed in 2023, followed by a further increase to US$250 million in 2024. The final year, 2025, shows a more substantial increase to US$391 million. This pattern indicates a generally increasing tax outflow related to operations, though with some year-to-year variation.
The divergence between the provision for income taxes and cash operating taxes is notable. The significant fluctuations in the provision for income taxes, particularly the large expense in 2024, are not fully reflected in the cash operating taxes paid. This difference could be attributable to timing differences between book and tax accounting, non-cash tax expenses, or the utilization of tax credits. Further investigation into the components of the provision for income taxes is warranted to understand the drivers of this disparity.
- Relationship between Provision and Cash Taxes
- In 2021 and 2022, the provision for income taxes was a benefit, while cash taxes were an outflow. This suggests the company was receiving tax refunds exceeding current taxable income. From 2023 onwards, the provision and cash taxes both generally represent outflows, but the magnitude differs significantly, especially in 2024. The substantial difference in 2024 indicates a large non-cash tax expense or a significant adjustment to deferred tax assets or liabilities.
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Invested Capital
Uber Technologies Inc., invested capital calculation (financing approach)
US$ in millions
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 Addition of capitalized operating leases.
2 Elimination of deferred taxes from assets and liabilities. See details »
3 Addition of allowance for doubtful accounts receivable.
4 Addition of restructuring and related charges accrual.
5 Addition of equity equivalents to total Uber Technologies, Inc. stockholders’ equity.
6 Removal of accumulated other comprehensive income.
7 Subtraction of construction in progress.
8 Subtraction of marketable securities.
The reported invested capital exhibited a fluctuating pattern over the five-year period. Total reported debt & leases generally increased, while total stockholders’ equity experienced significant volatility. These movements collectively influenced the overall invested capital position.
- Invested Capital Trend
- Invested capital initially increased from US$16,078 million in 2021 to US$16,340 million in 2022, representing a modest growth of approximately 1.6%. A subsequent decline was observed in 2023, falling to US$15,670 million. This downward trend continued into 2024, with invested capital reaching US$14,934 million, the lowest value within the observed period. A slight recovery occurred in 2025, with invested capital rising to US$15,770 million.
- Debt & Leases
- Total reported debt & leases demonstrated a generally increasing trend, moving from US$11,366 million in 2021 to US$12,302 million in 2025. However, this increase was not linear. A minor decrease was noted between 2023 and 2024, from US$11,702 million to US$11,436 million, before resuming an upward trajectory.
- Stockholders’ Equity
- Total stockholders’ equity experienced substantial fluctuations. A significant decrease occurred between 2021 and 2022, dropping from US$14,458 million to US$7,340 million. This was followed by a recovery in 2023, reaching US$11,249 million. Further substantial growth was observed in 2024 and 2025, with equity increasing to US$21,558 million and US$27,041 million respectively. This indicates a considerable strengthening of the equity position in the latter part of the period.
The interplay between debt & leases and stockholders’ equity significantly shaped the invested capital. The substantial increase in stockholders’ equity in 2024 and 2025 partially offset the continued growth in debt, contributing to the modest recovery in invested capital observed in 2025.
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Cost of Capital
Uber Technologies Inc., cost of capital calculations
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 144,048) | 144,048) | ÷ | 156,929) | = | 0.92 | 0.92 | × | 20.03% | = | 18.39% | ||
| Long-term debt and finance leases liabilities3 | 11,322) | 11,322) | ÷ | 156,929) | = | 0.07 | 0.07 | × | 3.75% × (1 – 21.00%) | = | 0.21% | ||
| Operating lease liability4 | 1,559) | 1,559) | ÷ | 156,929) | = | 0.01 | 0.01 | × | 6.60% × (1 – 21.00%) | = | 0.05% | ||
| Total: | 156,929) | 1.00 | 18.66% | ||||||||||
Based on: 10-K (reporting date: 2025-12-31).
1 US$ in millions
2 Equity. See details »
3 Long-term debt and finance leases liabilities. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 165,909) | 165,909) | ÷ | 177,348) | = | 0.94 | 0.94 | × | 20.03% | = | 18.74% | ||
| Long-term debt and finance leases liabilities3 | 9,810) | 9,810) | ÷ | 177,348) | = | 0.06 | 0.06 | × | 4.03% × (1 – 21.00%) | = | 0.18% | ||
| Operating lease liability4 | 1,629) | 1,629) | ÷ | 177,348) | = | 0.01 | 0.01 | × | 6.70% × (1 – 21.00%) | = | 0.05% | ||
| Total: | 177,348) | 1.00 | 18.97% | ||||||||||
Based on: 10-K (reporting date: 2024-12-31).
1 US$ in millions
2 Equity. See details »
3 Long-term debt and finance leases liabilities. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 169,006) | 169,006) | ÷ | 181,024) | = | 0.93 | 0.93 | × | 20.03% | = | 18.70% | ||
| Long-term debt and finance leases liabilities3 | 10,278) | 10,278) | ÷ | 181,024) | = | 0.06 | 0.06 | × | 5.30% × (1 – 21.00%) | = | 0.24% | ||
| Operating lease liability4 | 1,740) | 1,740) | ÷ | 181,024) | = | 0.01 | 0.01 | × | 6.60% × (1 – 21.00%) | = | 0.05% | ||
| Total: | 181,024) | 1.00 | 18.99% | ||||||||||
Based on: 10-K (reporting date: 2023-12-31).
1 US$ in millions
2 Equity. See details »
3 Long-term debt and finance leases liabilities. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 68,739) | 68,739) | ÷ | 79,972) | = | 0.86 | 0.86 | × | 20.03% | = | 17.22% | ||
| Long-term debt and finance leases liabilities3 | 9,359) | 9,359) | ÷ | 79,972) | = | 0.12 | 0.12 | × | 5.73% × (1 – 21.00%) | = | 0.53% | ||
| Operating lease liability4 | 1,874) | 1,874) | ÷ | 79,972) | = | 0.02 | 0.02 | × | 6.60% × (1 – 21.00%) | = | 0.12% | ||
| Total: | 79,972) | 1.00 | 17.87% | ||||||||||
Based on: 10-K (reporting date: 2022-12-31).
1 US$ in millions
2 Equity. See details »
3 Long-term debt and finance leases liabilities. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 68,152) | 68,152) | ÷ | 79,844) | = | 0.85 | 0.85 | × | 20.03% | = | 17.10% | ||
| Long-term debt and finance leases liabilities3 | 9,863) | 9,863) | ÷ | 79,844) | = | 0.12 | 0.12 | × | 5.25% × (1 – 21.00%) | = | 0.51% | ||
| Operating lease liability4 | 1,829) | 1,829) | ÷ | 79,844) | = | 0.02 | 0.02 | × | 6.70% × (1 – 21.00%) | = | 0.12% | ||
| Total: | 79,844) | 1.00 | 17.73% | ||||||||||
Based on: 10-K (reporting date: 2021-12-31).
1 US$ in millions
2 Equity. See details »
3 Long-term debt and finance leases liabilities. See details »
4 Operating lease liability. See details »
Economic Spread Ratio
Uber Technologies Inc., economic spread ratio 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) | ||||||
| Economic profit1 | 2,210) | 919) | (575) | (12,037) | (3,670) | |
| Invested capital2 | 15,770) | 14,934) | 15,670) | 16,340) | 16,078) | |
| Performance Ratio | ||||||
| Economic spread ratio3 | 14.01% | 6.16% | -3.67% | -73.67% | -22.83% | |
| Benchmarks | ||||||
| Economic Spread Ratio, Competitors4 | ||||||
| FedEx Corp. | -6.83% | -8.04% | -6.56% | -6.19% | -3.65% | |
| Union Pacific Corp. | -2.59% | -3.26% | -3.36% | -1.44% | -2.31% | |
| United Airlines Holdings Inc. | -2.62% | -1.80% | 0.88% | -3.34% | -10.26% | |
| United Parcel Service Inc. | -2.42% | -1.97% | 0.74% | 11.71% | 17.54% | |
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 Economic profit. See details »
2 Invested capital. See details »
3 2025 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × 2,210 ÷ 15,770 = 14.01%
4 Click competitor name to see calculations.
The financial trajectory exhibits a significant transition from substantial value destruction to consistent value creation over the analyzed five-year period. The shift is characterized by a recovery from deep deficits to positive economic returns, coinciding with a stabilized capital base.
- Economic Profit
- A volatile trend is observed, marked by a sharp decline in 2022 where economic profit reached a trough of negative US$ 12,037 million. A rapid recovery occurred in 2023, narrowing the loss to US$ 575 million, which preceded a transition into positive territory. Economic profit grew to US$ 919 million in 2024 and further expanded to US$ 2,210 million by 2025.
- Invested Capital
- Invested capital remained relatively stable throughout the period, showing a slight downward trend between 2022 and 2024. The capital base decreased from a peak of US$ 16,340 million in 2022 to US$ 14,934 million in 2024, before experiencing a modest increase to US$ 15,770 million in 2025.
- Economic Spread Ratio
- The economic spread ratio demonstrates a strong upward trajectory, mirroring the recovery in economic profit. After a severe contraction to -73.67% in 2022, the ratio improved significantly to -3.67% in 2023. The ratio turned positive in 2024 at 6.16% and reached 14.01% by 2025, indicating that the returns on invested capital have successfully exceeded the cost of capital.
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Economic Profit Margin
Uber Technologies Inc., economic profit margin 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) | ||||||
| Economic profit1 | 2,210) | 919) | (575) | (12,037) | (3,670) | |
| Revenue | 52,017) | 43,978) | 37,281) | 31,877) | 17,455) | |
| Performance Ratio | ||||||
| Economic profit margin2 | 4.25% | 2.09% | -1.54% | -37.76% | -21.03% | |
| Benchmarks | ||||||
| Economic Profit Margin, Competitors3 | ||||||
| FedEx Corp. | -5.47% | -6.44% | -5.06% | -4.40% | -2.79% | |
| Union Pacific Corp. | -6.72% | -8.34% | -8.56% | -3.47% | -6.17% | |
| United Airlines Holdings Inc. | -2.22% | -1.55% | 0.74% | -3.05% | -21.62% | |
| United Parcel Service Inc. | -1.38% | -1.04% | 0.37% | 5.23% | 8.01% | |
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 Economic profit. See details »
2 2025 Calculation
Economic profit margin = 100 × Economic profit ÷ Revenue
= 100 × 2,210 ÷ 52,017 = 4.25%
3 Click competitor name to see calculations.
A comprehensive transition in economic value creation is evident between 2021 and 2025. The period is characterized by an initial phase of significant economic loss followed by a rapid recovery and a shift toward positive value generation.
- Revenue Growth Trends
- Revenue demonstrates a consistent and aggressive upward trajectory, increasing from 17,455 million US$ in 2021 to 52,017 million US$ by 2025. This steady growth provides the necessary scale to support the transition toward economic profitability.
- Economic Profit Trajectory
- Economic profit experienced a sharp contraction in 2022, reaching a deficit of 12,037 million US$. However, a significant reversal occurred in 2023, with losses narrowing to 575 million US$. The company achieved a turnaround to positive economic profit in 2024 at 919 million US$, with further expansion to 2,210 million US$ by 2025.
- Economic Profit Margin Evolution
- The economic profit margin reflects a volatile but improving trend. After descending to a trough of -37.76% in 2022, the margin improved drastically to -1.54% in 2023. This recovery culminated in a positive margin of 2.09% in 2024 and a projected 4.25% in 2025, signaling that the company is successfully generating returns in excess of its cost of capital.
The overall financial pattern indicates a successful shift from a capital-destructive phase to a value-creative phase. The correlation between scaling revenue and the normalization of the economic profit margin suggests an improvement in operational efficiency and capital allocation.
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