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