Yelp Inc (YELP)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 151,045 | 79,043 | 58,353 | 31,514 | -31,071 |
| Total assets | US$ in thousands | 983,567 | 1,014,720 | 1,015,920 | 1,050,530 | 1,154,950 |
| Operating ROA | 15.36% | 7.79% | 5.74% | 3.00% | -2.69% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $151,045K ÷ $983,567K
= 15.36%
Based on the provided data, Yelp Inc's operating return on assets (ROA) has shown significant improvement over the years. The operating ROA was negative at -2.69% as of December 31, 2020, indicating that the company was not efficiently utilizing its assets to generate operating income.
However, by December 31, 2021, the operating ROA improved to 3.00%, reflecting a positive trend in the company's asset utilization efficiency. This improvement continued in the subsequent years, with the operating ROA reaching 5.74% by December 31, 2022, 7.79% by December 31, 2023, and significantly increasing to 15.36% by December 31, 2024.
The consistent increase in operating ROA suggests that Yelp Inc has been more effective in generating operating income relative to its asset base. This can be an indicator of improved operational efficiency, cost management, and overall financial performance. It also signifies that the company's management has been successful in optimizing the utilization of its assets to drive profitability.
Overall, the positive trend in Yelp Inc's operating ROA indicates an improvement in the company's operational performance and efficiency over the analyzed period.
Peer comparison
Dec 31, 2024