Yelp Inc (YELP)

Short-term

Turnover ratios

Yelp Inc's activity ratios provide insights into the efficiency of the company's operations in managing its working capital and resources.

1. Inventory turnover: The inventory turnover ratio measures how efficiently a company manages its inventory by showing how many times it sells and replaces its inventory during a specific period. Yelp's inventory turnover was 3.33 in 2021, indicating that the company turned over its inventory approximately 3.33 times during that year.

2. Receivables turnover: The receivables turnover ratio evaluates how efficiently a company collects its accounts receivable during a given period. In this case, Yelp's receivables turnover data is not available, as indicated by "—", suggesting a lack of specific information for analysis.

3. Payables turnover: The payables turnover ratio assesses how effectively a company manages its accounts payable and vendor payments. Similar to receivables turnover, there is no data provided for Yelp's payables turnover.

4. Working capital turnover: The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. Yelp's working capital turnover has been improving steadily over the years, from 1.53 in 2020 to 3.90 in 2024. This indicates that the company is becoming more efficient in using its working capital to generate sales.

Overall, while Yelp's working capital turnover has shown positive growth, the lack of data for inventory, receivables, and payables turnover limits a comprehensive evaluation of the company's overall activity ratios. Further information would be required to provide a more detailed analysis of Yelp Inc's operational efficiency.

---

Average number of days

Based on the provided data, the activity ratios for Yelp Inc can be analyzed as follows:

1. Days of Inventory on Hand (DOH):
- As of December 31, 2021, Yelp Inc had an average of 109.74 days of inventory on hand. This ratio indicates the average number of days it takes for the company to sell its inventory. A lower number is generally preferred as it suggests efficient inventory management.

2. Days of Sales Outstanding (DSO):
- The data shows that as of the dates provided, Yelp Inc had an unspecified number of days of sales outstanding. This ratio measures the average number of days it takes for the company to collect payment on its sales. A lower DSO is favorable as it indicates quicker cash collection.

3. Number of Days of Payables:
- The data does not provide specific information on the number of days of payables for Yelp Inc. This ratio typically measures the average number of days it takes for a company to pay its suppliers. A longer payable period can indicate a company's ability to manage cash flow effectively.

Overall, the activity ratios, particularly Days of Inventory on Hand and Days of Sales Outstanding, provide insights into Yelp Inc's operational efficiency and effectiveness in managing inventory and receivables.

---

Long-term

The fixed asset turnover ratio measures how effectively a company utilizes its fixed assets to generate revenue. A higher fixed asset turnover indicates better efficiency in utilizing fixed assets to generate sales.

For Yelp Inc, we observe a fluctuation in the fixed asset turnover ratio over the years. In particular:
- In December 31, 2020, the fixed asset turnover was 8.58, indicating that Yelp generated $8.58 in revenue for every dollar invested in fixed assets.
- By December 31, 2021, the fixed asset turnover decreased to 4.59, suggesting a decline in the efficiency of utilizing fixed assets to generate revenue.
- Subsequently, by December 31, 2022, the fixed asset turnover ratio improved significantly to 15.46, indicating a notable increase in efficiency in utilizing fixed assets to generate sales.
- The data for December 31, 2023, and December 31, 2024, is either not available or not applicable (denoted by "—"), limiting our ability to assess trend continuity.

In contrast, the total asset turnover ratio measures how efficiently a company utilizes all its assets to generate revenue. A higher total asset turnover ratio generally indicates better efficiency in asset utilization.

From the provided data for Yelp Inc:
- The total asset turnover ratio increased from 0.76 on December 31, 2020, to 1.44 by December 31, 2024, reflecting an improvement in the efficiency of asset utilization over the years.
- Specifically, on December 31, 2022, the total asset turnover ratio peaked at 1.17, indicating the highest level of efficiency in utilizing total assets to generate revenue during the period.

Overall, the trend in total asset turnover for Yelp Inc highlights an improvement in asset utilization efficiency, while the fluctuating pattern in fixed asset turnover suggests variability in how effectively the company leverages its fixed assets to generate revenue over the years.