Yelp Inc (YELP)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 132,850 | 118,036 | 137,812 | 114,505 | 99,173 | 91,912 | 42,804 | 36,084 | 36,347 | 39,392 | 48,349 | 44,552 | 39,671 | 37,570 | 18,485 | -9,717 | -19,424 | -23,361 | -12,280 | 24,013 |
| Total stockholders’ equity | US$ in thousands | 743,969 | 739,540 | 735,347 | 721,973 | 749,534 | 739,574 | 708,602 | 704,128 | 710,324 | 701,378 | 718,604 | 724,349 | 751,318 | 781,823 | 803,464 | 827,100 | 854,534 | 815,628 | 781,320 | 762,432 |
| ROE | 17.86% | 15.96% | 18.74% | 15.86% | 13.23% | 12.43% | 6.04% | 5.12% | 5.12% | 5.62% | 6.73% | 6.15% | 5.28% | 4.81% | 2.30% | -1.17% | -2.27% | -2.86% | -1.57% | 3.15% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $132,850K ÷ $743,969K
= 17.86%
Yelp Inc's return on equity (ROE) has shown a fluctuating trend over the past few years, as per the provided data. The ROE was negative in the second and third quarters of 2020, indicating that the company was not efficiently utilizing shareholders' equity to generate profits during that period.
However, starting from the first quarter of 2021, Yelp Inc's ROE turned positive and gradually increased over the subsequent quarters. This positive trend suggests that the company's profitability in relation to its shareholders' equity improved, reflecting better management of assets to generate earnings.
By the end of 2024, the ROE reached a high of 17.86%, indicating that Yelp Inc significantly enhanced its profitability and efficiency in utilizing equity to generate returns for shareholders. The increasing ROE implies that the company is effectively leveraging its equity capital to drive earnings growth.
Overall, the upward trajectory of Yelp Inc's ROE reflects improving financial performance and a positive outlook for the company's profitability and efficiency in utilizing shareholders' equity.
Peer comparison
Dec 31, 2024