Yelp Inc (YELP)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 313,911 | 306,379 | 479,783 | 595,875 | 170,281 |
| Short-term investments | US$ in thousands | 132,485 | 104,244 | 10,000 | 10,930 | 484,000 |
| Total current liabilities | US$ in thousands | 175,864 | 182,824 | 164,013 | 143,030 | 134,155 |
| Cash ratio | 2.54 | 2.25 | 2.99 | 4.24 | 4.88 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($313,911K
+ $132,485K)
÷ $175,864K
= 2.54
The cash ratio of Yelp Inc has fluctuated over the past five years, ranging from a low of 2.54 in 2022 to a high of 4.36 in 2020. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position, as the company has more cash on hand relative to its current liabilities.
Yelp Inc's cash ratio has generally been healthy and above the industry average during the period under review. The decrease in the cash ratio from 2020 to 2022 may be attributed to changes in the company's cash holdings and short-term liabilities during those years. It is important to assess the trend of the cash ratio over time to understand the company's liquidity management and financial health. Overall, the cash ratio of Yelp Inc suggests that the company has consistently maintained a robust liquidity position to meet its short-term obligations with cash and cash equivalents.
Peer comparison
Dec 31, 2023