Yelp Inc (YELP)
Working capital turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,350,662 | 1,317,426 | 1,280,874 | 1,241,811 | 1,205,528 | 1,169,086 | 1,128,644 | 1,086,054 | 1,040,559 | 999,594 | 950,952 | 862,967 | 880,779 | 914,397 | 954,062 | 1,030,022 | 1,014,286 | 989,203 | 967,920 | 955,870 |
| Total current assets | US$ in thousands | 624,216 | 625,939 | 587,510 | 591,594 | 595,992 | 623,101 | 611,186 | 637,341 | 644,677 | 667,106 | 689,182 | 703,346 | 712,725 | 694,192 | 617,393 | 594,873 | 533,309 | 499,299 | 531,288 | 775,042 |
| Total current liabilities | US$ in thousands | 175,864 | 189,686 | 215,531 | 199,297 | 182,824 | 199,384 | 180,006 | 195,631 | 164,013 | 150,532 | 159,223 | 156,051 | 143,030 | 162,505 | 120,530 | 140,681 | 134,155 | 136,113 | 135,707 | 130,751 |
| Working capital turnover | 3.01 | 3.02 | 3.44 | 3.17 | 2.92 | 2.76 | 2.62 | 2.46 | 2.16 | 1.94 | 1.79 | 1.58 | 1.55 | 1.72 | 1.92 | 2.27 | 2.54 | 2.72 | 2.45 | 1.48 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,350,662K ÷ ($624,216K – $175,864K)
= 3.01
Yelp Inc's working capital turnover has shown a consistent improvement over the past four quarters, indicating the company's improved efficiency in utilizing its working capital to generate sales. The working capital turnover ratio has increased from 2.44 in Q1 2022 to 3.13 in Q1 2023, peaking at 3.41 in Q2 2023 before slightly decreasing to 2.98 in Q4 2023.
This trend suggests that Yelp Inc has been more effective in managing its working capital to support its operations and drive revenue growth. A higher working capital turnover ratio indicates that the company is generating more sales revenue for each dollar of working capital invested, reflecting improved liquidity and operational efficiency. This positive trend in working capital turnover bodes well for Yelp Inc's financial health and sustainability in the long run.
Peer comparison
Dec 31, 2023