Yelp Inc (YELP)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 99,173 | 36,347 | 39,671 | -19,424 | 40,881 |
| Total assets | US$ in thousands | 1,014,720 | 1,015,920 | 1,050,530 | 1,154,950 | 1,070,700 |
| ROA | 9.77% | 3.58% | 3.78% | -1.68% | 3.82% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $99,173K ÷ $1,014,720K
= 9.77%
Yelp Inc's return on assets (ROA) has shown fluctuating performance over the past five years. In 2023, the ROA increased significantly to 9.77%, a notable improvement compared to the preceding years. This suggests that Yelp generated a higher level of profits relative to its total assets invested in the business.
The ROA was relatively stable in 2021 and 2019, standing at 3.78% and 3.82% respectively, indicating a consistent ability to generate profits from its asset base during those years. However, there was a dip in the ROA in 2020 to -1.68%, indicating that the company experienced a loss relative to its asset base during that period, which may be a concerning sign for investors.
Overall, Yelp's ROA performance reflects variability in its ability to generate profits from its assets, with a notable improvement in 2023. It is important for investors to monitor this ratio closely to assess the company's efficiency in utilizing its assets to generate returns.
Peer comparison
Dec 31, 2023