Yelp Inc (YELP)

Cash ratio

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
Cash and cash equivalents US$ in thousands 217,325 261,588 252,435 296,045 313,911 305,103 270,256 289,298 306,379 330,970 421,162 465,121 479,783 531,620 558,227 588,592 595,875 590,789 525,693 364,576
Short-term investments US$ in thousands 100,581 135,426 139,876 132,249 132,485 121,468 126,909 124,903 94,244 90,871 10,000 10,000 10,000 10,000 10,000 10,000 10,930 0 0 122,618
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
Cash ratio 2.05 2.33 2.48 2.24 2.54 2.25 1.84 2.08 2.19 2.12 2.40 2.43 2.99 3.60 3.57 3.84 4.24 3.64 4.36 3.46

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($217,325K + $100,581K) ÷ $154,974K
= 2.05

The cash ratio of Yelp Inc has fluctuated over the reporting periods provided. Starting at 3.46 on March 31, 2020, the ratio increased to its peak of 4.36 on June 30, 2020, indicating an improvement in the company's ability to cover its short-term liabilities with its cash and cash equivalents. However, the ratio experienced some volatility over the subsequent quarters, dipping to 2.99 on December 31, 2021, and then gradually declining to 2.05 on December 31, 2024.

A cash ratio above 1 indicates that the company has sufficient cash and cash equivalents to cover its short-term liabilities. Despite the fluctuations, Yelp Inc maintained a ratio above 1 throughout the period, suggesting a relatively healthy liquidity position. However, the downward trend in the ratio from its peak in mid-2020 to the end of 2024 may indicate potential liquidity challenges or a shift in the company's cash management strategy.

Overall, a declining cash ratio could raise concerns about Yelp Inc's ability to meet its short-term obligations solely with its available cash reserves. It would be important for stakeholders to closely monitor the company's liquidity position and cash management practices to ensure continued financial stability.


Peer comparison

Dec 31, 2024