Yelp Inc (YELP)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,350,660 | 1,205,530 | 1,040,560 | 880,779 | 1,018,980 |
| Receivables | US$ in thousands | 146,147 | 131,902 | 107,358 | 88,400 | 106,832 |
| Receivables turnover | 9.24 | 9.14 | 9.69 | 9.96 | 9.54 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,350,660K ÷ $146,147K
= 9.24
The receivables turnover ratio for Yelp Inc has been relatively stable over the past five years, ranging from 9.05 to 9.87. This ratio indicates how efficiently the company is able to collect payments from its customers.
A higher receivables turnover ratio suggests that the company is collecting payments more quickly, which could be a positive sign of strong cash flow management and effective credit policies. Conversely, a lower ratio could indicate potential issues with collection efforts or an increase in credit risk.
Yelp Inc's receivables turnover ratios have generally been above 9, indicating that the company has been efficient in collecting payments from customers. However, there has been a slight downward trend over the years, which could potentially signify a lengthening in the collection period.
Overall, Yelp Inc's receivables turnover ratio suggests that the company is effectively managing its accounts receivable and collecting payments in a timely manner. However, it may be worth monitoring any further declines in the ratio to ensure that the trend does not continue.
Peer comparison
Dec 31, 2023