Uber

YATINDRA PRAKASH SINGH

MBA-500, MODULE-4 (SNHU)
Key Financial Performance Indicators
1. Net Profit Margin: Net Profit Margin of Uber= [Net Income of Uber / Revenue] x 100

The Net Profit Margin for Uber in 2018 is 9.5562. In Year 2020, NPM is -60.7595, In year 2021,
NPM is -2.8416. Currently, In Year 2022 it is -28.6759

2. Current Ratio: It shows short term liquidity for the company. We get the Current Ratio of
Uber by dividing Current Asset by Current Liability.

Current Ratio for Uber in Year 2018 is 2.0329, for year 2019 it is 2.4694, for 2020, it is 1.4395,
for 2021, it is 0.9773 and for year 2022, it is 1.0447
Key Financial Performance Indicators:
Cont.
3. Account Receivable Turnover Ratio: It indicates how effectively uber collects dollar
amounts from the clients. For Uber Account Receivable Turnover Ratio in 2018 is 11.2536. In
year 2019, it is 10.7084. In Year 2020, it is 10.3812, In year 2021, it is 7.1566. Currently, In Year
2022 it is 11.4707

4. Return on Equity: Net Income divided by the total shareholders fund is called Return on
Income. Negative ROE indicates the shareholders fund is deteriorating. For Uber Return on
Equity in 2018 is -13.3649, In year 2019, it is -57.2351, In Year 2020, it is -52.3483, In year
2021, it is -3.7636. Currently, In Year 2022 it is -113.1781
Organization and Financial Success
1. Different functional areas or departments of Uber contribute to its overall financial
success: In Year ending 2022, Revenue generated from Mobility is $14,029, Revenue generated
from Delivery is $10,901 and Revenue generated from Freight is $6,947. So, we can say that the
different departments are contributing to the growth of uber.

2. Common industry financial benchmarks should Uber consider in developing its

strategies to grow the business: Uber should see the Total Cost from Expenses and Net Loss
from Operations for the company to make strategies for the growth. These expenses should be as
low as possible. Also, Uber should try to increase the Current Ratio for the Uber. It indicates that
the uber is having more asset as compared to equity. Also, Uber should include Carbon Footprint
Emission Ratio. It should also be considered for strategic planning.
Organization and Financial Success: Cont.
3. Financial benchmark that Uber can adopt to measure its performance and increase its
industry attractiveness: Uber should see the Net Profit Margin and Return on Equity for the
company to verify the financial stability. Return on Equity should be positive and preferably
more than the annual inflation rate. Also, It should include carbon metrics in the review of their
financial statements that indicate whether the company is following the environmental
guidelines.

4. Critical elements of accounting guidelines that will be crucial for Uber to meet: Uber
should follow the same accounting style for each of the year. Also, different KPI Percentage
indicating the growth of the company should be given the Annul account of uber.
Articulation of Response
The Net Profit Margin for Uber is Negative (-28.6759) in year 2022. The total Expense of uber
exceeds the revenue by an amount of $9,141. This indicates that the uber is in loss this year.
CORONA Virus and the Lockdown is one of the reasons that led to loss in uber after the year
2019.

Also, the Cost of revenue, exclusive of depreciation and amortization is coming as $19,659. Uber
should work on decreasing this cost. Proper Strategic planning should be done to increase the
revenue.
References
1. Uber, (n.d.). Annual Statement 2022.
https://s23.q4cdn.com/407969754/files/doc_financials/2023/ar/2022-annual-report.pdf

2. CSR Hub, (n.d.). Uber ESG Ranking.

https://www.csrhub.com/CSR_and_sustainability_information/Uber