Yelp Inc (YELP)
Quick 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 | 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 |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Quick 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
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($217,325K
+ $100,581K
+ $—K)
÷ $154,974K
= 2.05
The quick ratio of Yelp Inc has fluctuated over the years, indicating variations in its short-term liquidity position. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets excluding inventories.
From March 31, 2020, to June 30, 2020, the quick ratio increased significantly from 3.46 to 4.36, indicating a strong liquidity position. However, the ratio decreased to 3.64 by September 30, 2020. It then improved to 4.24 by December 31, 2020, before declining gradually to 2.99 by December 31, 2021.
During the period from March 31, 2022, to June 30, 2024, the quick ratio hovered between 1.84 and 2.54, which suggests a relatively stable but lower liquidity position compared to earlier periods. The decreasing trend in the quick ratio from the peak of 4.36 in June 2020 indicates potential liquidity challenges the company may be facing.
Overall, the declining trend in Yelp Inc's quick ratio over the years may raise concerns about its ability to fulfill short-term obligations using its current liquid assets, and warrant further analysis into the company's liquidity management strategies.
Peer comparison
Dec 31, 2024