Yelp Inc (YELP)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 132,850 | 99,173 | 36,347 | 39,671 | -19,424 |
| Total assets | US$ in thousands | 983,567 | 1,014,720 | 1,015,920 | 1,050,530 | 1,154,950 |
| ROA | 13.51% | 9.77% | 3.58% | 3.78% | -1.68% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $132,850K ÷ $983,567K
= 13.51%
Based on the data provided for Yelp Inc's Return on Assets (ROA) from December 31, 2020, to December 31, 2024, the company's ROA has shown a positive trend over the years.
In December 2020, Yelp Inc had a negative ROA of -1.68%, indicating that the company's assets were not generating a positive return at that time. However, there was a significant improvement in ROA in the subsequent years. By December 2021, the ROA had improved to 3.78%, indicating that the company's assets were starting to generate a positive return.
The trend continued to improve in the following years, with ROA reaching 3.58% by December 2022, 9.77% by December 2023, and 13.51% by December 2024. This indicates that Yelp Inc's asset utilization and profitability have been on an upward trajectory, with a substantial increase in the return generated per dollar of assets invested in the business.
Overall, the increasing trend in ROA suggests that Yelp Inc has been more efficient in utilizing its assets to generate profits and create value for its shareholders over the years. It indicates a positive financial performance and management effectiveness in generating returns on the company's assets.
Peer comparison
Dec 31, 2024