Yelp Inc (YELP)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 152,213 | 144,388 | 139,609 | 118,035 | 99,632 | 87,412 | 58,963 | 56,222 | 58,282 | 44,491 | 52,712 | 35,630 | 31,514 | 26,400 | 14,080 | -20,188 | -38,795 | -35,628 | -35,403 | 12,143 |
| Total assets | US$ in thousands | 983,567 | 980,208 | 964,978 | 993,477 | 1,014,720 | 1,027,320 | 1,033,290 | 1,021,680 | 1,015,920 | 1,030,330 | 1,023,170 | 1,044,910 | 1,050,530 | 1,079,070 | 1,105,240 | 1,135,380 | 1,154,950 | 1,138,950 | 1,073,480 | 1,085,220 |
| Operating ROA | 15.48% | 14.73% | 14.47% | 11.88% | 9.82% | 8.51% | 5.71% | 5.50% | 5.74% | 4.32% | 5.15% | 3.41% | 3.00% | 2.45% | 1.27% | -1.78% | -3.36% | -3.13% | -3.30% | 1.12% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $152,213K ÷ $983,567K
= 15.48%
Operating return on assets (Operating ROA) is a key financial ratio that indicates a company's efficiency in generating profits from its assets used in its core operations.
Analyzing Yelp Inc's Operating ROA data from March 31, 2020, to December 31, 2024, we observe a fluctuating trend. The company's Operating ROA started at 1.12% in March 2020, indicating that for every dollar of assets employed in its operations, Yelp generated a profit of 1.12 cents.
However, the ratio turned negative in the following quarters, showing that Yelp's operating profits were insufficient to cover the assets utilized during those periods. The negative figures from June 2020 to March 2021 indicate potential operational inefficiencies or financial challenges faced by the company during that time.
From June 2021 onwards, Yelp's Operating ROA started to improve, with a gradual increase in the ratio. This positive trend suggests that Yelp enhanced its operational efficiency and profitability, as seen in the consistent growth in the ratio. By December 31, 2024, Yelp's Operating ROA reached 15.48%, signifying a significant improvement in the company's ability to generate profits from its assets.
Overall, the increasing trend in Yelp Inc's Operating ROA indicates the company's progress in utilizing its assets efficiently to generate operating profits over the analyzed period. However, continuous monitoring of the ratio is necessary to ensure sustained operational efficiency and profitability in the future.
Peer comparison
Dec 31, 2024