Yelp Inc (YELP)
Operating return on assets (Operating ROA)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 79,043 | 87,412 | 58,963 | 56,222 | 58,353 | 44,562 | 52,783 | 35,701 | 31,514 | 26,400 | 14,080 | -20,188 | -38,795 | -35,628 | -35,403 | 12,143 | 35,511 | 30,587 | 31,418 | 26,842 |
| Total assets | US$ in thousands | 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 | 1,070,700 | 1,028,770 | 1,083,430 | 1,337,860 |
| Operating ROA | 7.79% | 8.51% | 5.71% | 5.50% | 5.74% | 4.33% | 5.16% | 3.42% | 3.00% | 2.45% | 1.27% | -1.78% | -3.36% | -3.13% | -3.30% | 1.12% | 3.32% | 2.97% | 2.90% | 2.01% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $79,043K ÷ $1,014,720K
= 7.79%
Operating Return on Assets (ROA) is a key financial ratio used to evaluate a company's efficiency in generating operating profits relative to its total assets. It indicates how well a company utilizes its assets to generate operating income.
Analyzing Yelp Inc's Operating ROA over the past eight quarters reveals fluctuations in its operational efficiency. In Q4 2023, Yelp Inc's Operating ROA stood at 7.79%, showing a slight decrease compared to the previous quarter. However, it remained relatively strong compared to previous periods.
Looking further back, Yelp's Operating ROA has shown an overall increasing trend since Q1 2022, with occasional fluctuations. The company's Operating ROA has improved steadily from 3.42% in Q1 2022 to 7.79% in Q4 2023, demonstrating a positive trajectory in operational efficiency and asset utilization.
Yelp Inc's ability to maintain a rising trend in Operating ROA suggests improved efficiency in generating operating income in relation to its asset base. Investors and stakeholders may view this positively as it indicates the company's effective management of assets to drive operational profitability. It is important for Yelp Inc to sustain and further improve its Operating ROA to ensure continued operational success and long-term value creation.
Peer comparison
Dec 31, 2023