Yelp Inc (YELP)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 743,969 | 749,534 | 710,324 | 751,318 | 854,534 |
| ROE | 17.86% | 13.23% | 5.12% | 5.28% | -2.27% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $132,850K ÷ $743,969K
= 17.86%
Based on the provided data, the return on equity (ROE) of Yelp Inc has shown a fluctuating trend over the last five years. Yelp Inc's ROE was negative at -2.27% as of December 31, 2020. However, there has been an upward trend since then, with the ROE increasing to 5.28% by the end of 2021, and further rising to 5.12% by the end of 2022.
In 2023, Yelp Inc experienced a more significant improvement in profitability, with the ROE reaching 13.23%, indicating that the company was generating more profit from shareholders' equity. This positive momentum continued into 2024, with an ROE of 17.86%, reflecting a substantial increase in profitability compared to previous years.
Overall, the trend in Yelp Inc's ROE shows that the company has been able to enhance its profitability and efficiency in utilizing shareholders' equity over the past five years. Investors and stakeholders may view this as a positive indication of Yelp Inc's financial performance and management effectiveness.
Peer comparison
Dec 31, 2024