Yelp Inc (YELP)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 79,043 | 58,353 | 31,514 | -38,795 | 35,511 |
| Total assets | US$ in thousands | 1,014,720 | 1,015,920 | 1,050,530 | 1,154,950 | 1,070,700 |
| Operating ROA | 7.79% | 5.74% | 3.00% | -3.36% | 3.32% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $79,043K ÷ $1,014,720K
= 7.79%
Operating return on assets (operating ROA) measures the efficiency with which Yelp Inc generates operating income relative to its total assets. A higher operating ROA indicates better operational performance and asset utilization.
Yelp Inc's operating ROA has shown an improving trend over the five-year period, increasing from 3.32% in 2019 to 7.79% in 2023. This indicates that the company has been able to enhance its operational efficiency and generate more operating income relative to its asset base.
In particular, Yelp Inc's operating ROA saw a significant improvement from a negative -3.02% in 2020 to 7.79% in 2023. This turnaround suggests that the company has effectively managed its assets and operations to enhance profitability.
Overall, the increasing trend in Yelp Inc's operating ROA reflects an improvement in the company's operational performance and efficiency in generating operating income in relation to its asset base over the five-year period.
Peer comparison
Dec 31, 2023