Yelp Inc (YELP)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 146,147 | 131,902 | 107,358 | 88,400 | 106,832 |
| Total current liabilities | US$ in thousands | 175,864 | 182,824 | 164,013 | 143,030 | 134,155 |
| Quick ratio | 3.37 | 2.97 | 3.64 | 4.86 | 5.67 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($313,911K
+ $132,485K
+ $146,147K)
÷ $175,864K
= 3.37
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term financial obligations with its most liquid assets, excluding inventory. A higher quick ratio indicates a stronger ability to cover current liabilities with its quick assets.
Looking at Yelp Inc's quick ratio over the past five years, we observe a fluctuating trend. In 2023, the quick ratio stands at 3.55, showing a slight increase from the previous year. This suggests that Yelp has $3.55 in liquid assets available to cover each $1 of current liabilities, indicating a healthy liquidity position.
Comparing to previous years, the quick ratio was 3.26 in 2022, 3.93 in 2021, 4.98 in 2020, and 3.98 in 2019. The significant drop in the quick ratio from 2020 to 2021 and the subsequent recovery in 2023 indicate fluctuations in Yelp's liquidity management over the years.
While Yelp Inc's current quick ratio is strong, investors and stakeholders should monitor this ratio closely to ensure that the company maintains a healthy liquidity position to meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2023