Yelp Inc (YELP)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,412,060 | 1,337,060 | 1,193,510 | 1,031,840 | 872,933 |
| Total current assets | US$ in thousands | 516,879 | 624,216 | 595,992 | 644,677 | 712,725 |
| Total current liabilities | US$ in thousands | 154,974 | 175,864 | 182,824 | 164,013 | 143,030 |
| Working capital turnover | 3.90 | 2.98 | 2.89 | 2.15 | 1.53 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,412,060K ÷ ($516,879K – $154,974K)
= 3.90
Over the past five years, the working capital turnover ratio of Yelp Inc has exhibited a positive trend, increasing from 1.53 in December 2020 to 3.90 in December 2024. This indicates that the company was more efficient in utilizing its working capital to generate revenue. The higher turnover ratio suggests that Yelp Inc was able to effectively manage its current assets and liabilities to support its operations and sales growth. The consistent improvement in the working capital turnover ratio reflects a positive sign of operational efficiency and effective working capital management within the company. This upward trend signifies that Yelp Inc has been able to optimize its resources and capitalize on opportunities to enhance its overall financial performance by efficiently converting working capital into revenue over the period under review.
Peer comparison
Dec 31, 2024