Yelp Inc (YELP)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | 95.45 | 55.48 | 66.60 | — | — | 71.51 | 68.38 | — | — | — | — |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 95.45 | 55.48 | 66.60 | 0.00 | 0.00 | 71.51 | 68.38 | 0.00 | 0.00 | 0.00 | 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 exhibited fluctuations over the years based on the provided data. The cash conversion cycle, which represents the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales, was consistently at 0.00 days for the first three quarters of 2020 and for the last quarter of 2020, implying efficient management of working capital during that period.
However, there was a significant increase in the cash conversion cycle to 68.38 days in the first quarter of 2021, and this trend continued into the second quarter of 2021 with a cycle of 71.51 days. Subsequently, the cycle returned to 0.00 days for the third and fourth quarters of 2021.
In the first quarter of 2022, there was a slight decrease to 66.60 days, followed by a decrease to 55.48 days in the second quarter of 2022, indicating an improvement in the efficiency of converting assets into cash during this period.
The cash conversion cycle spiked to 95.45 days in the third quarter of 2022, suggesting a delay in the conversion process during this period. However, it returned to 0.00 days for the last quarter of 2022 and remained at this level for the following quarters until the end of 2024.
Overall, Yelp Inc has experienced variations in its cash conversion cycle, with periods of efficient working capital management and occasional spikes in the time it takes to convert assets into cash. Continuous monitoring and management of the cash conversion cycle are essential to ensure optimal utilization of resources and liquidity within the company.
Peer comparison
Dec 31, 2024