Yelp Inc (YELP)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 749,534 | 710,324 | 751,318 | 854,534 | 754,991 |
| ROE | 13.23% | 5.12% | 5.28% | -2.27% | 5.41% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $99,173K ÷ $749,534K
= 13.23%
Yelp Inc's return on equity (ROE) has shown fluctuations over the past five years. In 2023, the ROE increased significantly to 13.23% compared to the previous year's 5.12%. This improvement indicates that Yelp was able to generate a higher level of net income relative to its shareholders' equity, reflecting better efficiency in utilizing its equity to generate profits.
The ROE for 2023 is also higher than the ROE in 2021 and 2019, indicating a positive trend over the long term. However, it is important to note that the ROE was negative in 2020 (-2.27%), which suggests that Yelp experienced a net loss relative to its equity that year.
Overall, Yelp's recent improvement in ROE is a positive development, signaling enhanced profitability and efficiency in generating returns for its shareholders. Monitoring ROE trends over time can provide insights into the company's financial performance and effectiveness in utilizing equity to drive shareholder value.
Peer comparison
Dec 31, 2023