Yelp Inc (YELP)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | 109.74 | — |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 109.74 | 0.00 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
The cash conversion cycle of Yelp Inc has shown variability over the years based on the data provided. In 2020 and 2022, the company achieved a cash conversion cycle of 0.00 days, indicating that it efficiently managed its working capital to convert inventory and receivables into cash quickly.
However, in 2021, there was a significant increase in the cash conversion cycle to 109.74 days. This suggests that Yelp took longer to convert its investments in inventory and receivables into cash during that period. It could be due to changes in the company's operational efficiency or external factors impacting its cash flow management.
In the subsequent years, from 2023 to 2024, Yelp managed to bring back its cash conversion cycle to 0.00 days, implying a return to more efficient working capital management practices.
Overall, it is essential for Yelp Inc to consistently monitor and improve its cash conversion cycle to ensure optimal cash flow operations and sustainable financial performance.
Peer comparison
Dec 31, 2024