Yelp Inc (YELP)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,412,064 | 1,392,488 | 1,377,266 | 1,357,376 | 1,337,062 | 1,303,789 | 1,267,558 | 1,229,316 | 1,193,506 | 1,157,803 | 1,118,067 | 1,076,371 | 1,031,839 | 991,634 | 943,286 | 855,128 | 872,933 | 908,561 | 950,228 | 1,028,153 |
| Total current assets | US$ in thousands | 516,879 | 590,228 | 583,679 | 606,900 | 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 |
| Total current liabilities | US$ in thousands | 154,974 | 170,369 | 158,073 | 191,296 | 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 |
| 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,412,064K ÷ ($516,879K – $154,974K)
= 3.90
Working capital turnover is a financial ratio that measures a company's efficiency in generating revenue from its working capital. A higher ratio indicates better efficiency in managing working capital to generate sales.
Analyzing the working capital turnover of Yelp Inc over the years, we observe a fluctuating trend. The ratio has shown an increasing pattern, starting at 2.26 on March 31, 2020, and reaching 3.90 on December 31, 2024. This suggests that Yelp Inc has been improving its efficiency in utilizing its working capital to generate revenue over the years.
It is important to note that the working capital turnover ratio surpassed 3.0 multiple times during the period, indicating that Yelp Inc was able to generate sales three times or more from its working capital investment. This is a positive sign as it shows effective management of working capital resources in driving revenue growth.
Overall, the increasing trend in working capital turnover for Yelp Inc reflects a positive trajectory in the company's operational efficiency and financial performance.
Peer comparison
Dec 31, 2024