Yelp Inc (YELP)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 182,960 | 105,082 | 66,778 | 33,718 | -35,125 |
| Revenue | US$ in thousands | 1,412,060 | 1,337,060 | 1,193,510 | 1,031,840 | 872,933 |
| Pretax margin | 12.96% | 7.86% | 5.60% | 3.27% | -4.02% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $182,960K ÷ $1,412,060K
= 12.96%
Based on the data provided, Yelp Inc's pretax margin has shown a positive trend over the past few years. In December 31, 2020, the pretax margin was at a slight negative (-4.02%) indicating that the company had incurred more expenses than its operating income. However, there has been a notable improvement in subsequent years, with the pretax margin increasing to 3.27% in December 31, 2021, 5.60% in December 31, 2022, 7.86% in December 31, 2023, and reaching 12.96% in December 31, 2024.
This improvement indicates that Yelp Inc has been able to better control its expenses relative to its operating income, leading to higher profitability before taxes. The steady increase in pretax margin over the years suggests that the company is becoming more efficient in managing its costs and generating higher levels of income. It also indicates a positive outlook for the company's financial performance and profitability in the future.
Peer comparison
Dec 31, 2024