Yelp Inc (YELP)

Short-term

Turnover ratios

The inventory turnover ratio for Yelp Inc is not provided in the data table, suggesting that the company may not have significant inventory holdings or that inventory turnover is not a key metric for its operations.

The receivables turnover ratio indicates how efficiently the company collects its accounts receivable. Yelp Inc has maintained a relatively stable receivables turnover ratio over the past five years, ranging from 9.05 to 9.87. This suggests that the company has been effective in collecting payments from its customers within a reasonable timeframe.

The payables turnover ratio reflects how quickly the company pays its suppliers. Yelp Inc has shown fluctuations in its payables turnover ratio over the five-year period, with a peak in 2019 and a decrease in 2021. A higher payables turnover ratio may indicate a shorter payment period to suppliers, while a lower ratio could reflect a longer payment period.

The working capital turnover ratio measures the efficiency of a company in generating revenue relative to its working capital. Yelp Inc has generally improved its working capital turnover ratio over the past five years, indicating that it is generating more revenue per unit of working capital. This suggests improved operational efficiency and better utilization of resources.

Overall, Yelp Inc has demonstrated good efficiency in managing its receivables and working capital, while the fluctuations in the payables turnover ratio may warrant further investigation into the company's payment strategies and relationships with suppliers.

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Average number of days

Days of inventory on hand (DOH) is not provided in the data table, making it unavailable for analysis.

Days of sales outstanding (DSO) has been relatively consistent over the past five years, ranging from 36.96 days in 2020 to 40.34 days in 2022. DSO measures how long it takes for the company to collect revenue after making a sale. A lower DSO indicates faster collection of accounts receivable, which is generally favorable as it shows efficient credit management.

Number of days of payables reflects the number of days it takes the company to pay its suppliers. Yelp Inc has shown significant variability in this ratio over the years, with a low of 35.10 days in 2019 and a high of 75.37 days in 2021. A higher number of days of payables may indicate that the company is taking longer to pay its suppliers, potentially signaling a strain on liquidity or strained supplier relationships.

Overall, the company's days of sales outstanding and number of days of payables metrics suggest opportunities for improvement in managing working capital efficiency. Improving DSO and optimizing payment terms with suppliers could potentially enhance Yelp Inc's liquidity position and overall financial performance.

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Long-term

The fixed asset turnover ratio of Yelp Inc has been showing a consistent upward trend over the past five years, increasing from 8.58 in 2020 to 19.47 in 2023. This indicates that the company is generating significantly more revenue per dollar of fixed assets invested, reflecting improved efficiency in utilizing its long-term assets.

In comparison, the total asset turnover ratio also demonstrates an increasing trend, rising from 0.76 in 2020 to 1.32 in 2023. This suggests that Yelp Inc has been able to generate more sales per dollar of total assets over the years, signaling improved overall efficiency in asset utilization.

The substantial increase in both fixed asset turnover and total asset turnover ratios indicates that Yelp Inc has been effectively leveraging its long-term assets to drive revenue growth and operational performance. This trend could be attributed to better resource allocation, enhanced operational efficiency, or strategic investments that have resulted in improved utilization of assets to generate revenue. Overall, the rising activity ratios reflect positive long-term asset management and operational effectiveness within the company.