Yelp Inc (YELP)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — | — | — | — | — | 3.82 | 6.58 | 5.48 | — | — | 5.10 | 5.34 | — | — | — | — |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 3.90 | 3.32 | 3.24 | 3.27 | 2.98 | 2.99 | 3.41 | 3.13 | 2.89 | 2.73 | 2.59 | 2.44 | 2.15 | 1.92 | 1.78 | 1.56 | 1.53 | 1.71 | 1.91 | 2.26 |
Yelp Inc's activity ratios can provide insights into how efficiently the company is managing its assets and operations. Let's analyze the activity ratios based on the provided data:
1. Inventory turnover:
- Yelp Inc's inventory turnover ratio shows fluctuations over the years. The company had an inventory turnover ratio of 5.34 as of March 31, 2021, which increased to 6.58 as of June 30, 2022, before declining to 3.82 as of September 30, 2022. The ratio provides an indication of how quickly Yelp is selling its inventory.
2. Receivables turnover:
- There is no available data for Yelp Inc's receivables turnover ratio, indicating a lack of information on how efficiently the company is collecting its accounts receivable, which is a critical aspect of managing cash flow.
3. Payables turnover:
- Similar to receivables turnover, there is no data provided for Yelp Inc's payables turnover ratio. This ratio would have shown how long it takes the company to pay its suppliers, which is important for managing working capital.
4. Working capital turnover:
- Yelp Inc's working capital turnover has been steadily increasing from 2.26 as of March 31, 2020, to 3.90 as of December 31, 2024. This indicates that the company is generating more revenue relative to its working capital over the years, which is a positive sign of operational efficiency.
In conclusion, while Yelp Inc's working capital turnover ratio shows improvement over time, the lack of available data for inventory, receivables, and payables turnover ratios limits a comprehensive analysis of the company's overall activity efficiency. Monitoring these ratios could provide a more detailed insight into Yelp's operational performance and financial health.
Average number of days
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | 95.45 | 55.48 | 66.60 | — | — | 71.51 | 68.38 | — | — | — | — |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
The Days of Inventory on Hand (DOH) for Yelp Inc varied over the years as follows:
- As of March 31, 2021, the DOH stood at 68.38 days.
- By June 30, 2021, it increased to 71.51 days.
- A notable decrease was observed by June 30, 2022, when the DOH declined to 55.48 days.
- The DOH significantly rose to 95.45 days by September 30, 2022.
The Days of Sales Outstanding (DSO) and Number of Days of Payables did not provide any clear data points for analysis throughout the mentioned periods.
The fluctuations in the DOH indicate varying levels of inventory management efficiency, with a notable increase observed in Q3 2022, potentially impacting liquidity and operational performance. Additional information or data regarding DSO and payables turnover would provide a more comprehensive view of Yelp Inc's overall activity ratios and working capital management.
Long-term
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 9.02 | 16.77 | 15.98 | 15.46 | 6.32 | 13.60 | 12.95 | 4.59 | 4.25 | 3.99 | 8.73 | 8.58 | 3.22 | 8.90 | 9.33 |
| Total asset turnover | 1.44 | 1.42 | 1.43 | 1.37 | 1.32 | 1.27 | 1.23 | 1.20 | 1.17 | 1.12 | 1.09 | 1.03 | 0.98 | 0.92 | 0.85 | 0.75 | 0.76 | 0.80 | 0.89 | 0.95 |
Yelp Inc's long-term activity ratios, specifically the fixed asset turnover and total asset turnover, provide insights into how efficiently the company is utilizing its assets to generate revenue.
- Fixed Asset Turnover: This ratio measures how effectively a company is using its fixed assets to generate sales. Yelp's fixed asset turnover ratio fluctuated over the years, with a low point in September 2020 at 3.22 and a peak in March 2024 at 15.98. The increasing trend from 2020 to 2024 indicates that Yelp has been able to generate a higher level of revenue relative to its investment in fixed assets.
- Total Asset Turnover: The total asset turnover ratio indicates how efficiently a company is using all its assets to generate revenue. Yelp's total asset turnover ratio also exhibited fluctuations over the years, with a slight decline from 0.95 in March 2020 to 0.75 in March 2021, followed by an upward trend to reach 1.44 in December 2024. This suggests that Yelp improved its ability to generate sales in relation to its total assets over the period.
In general, the increasing trends in both the fixed asset turnover and total asset turnover ratios indicate that Yelp Inc has been able to enhance its asset efficiency and generate more revenue per dollar invested in both fixed and total assets. This improvement reflects positively on the company's operational efficiency and management of its asset base.