Yelp Inc (YELP)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 79,043 | 58,353 | 31,514 | -38,795 | 35,511 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 749,534 | 710,324 | 751,318 | 854,534 | 754,991 |
| Return on total capital | 10.55% | 8.21% | 4.19% | -4.54% | 4.70% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $79,043K ÷ ($—K + $749,534K)
= 10.55%
Yelp Inc's return on total capital has demonstrated a positive trend over the past five years. The return on total capital increased from -4.09% in 2020 to 10.55% in 2023, showcasing a significant improvement in the company's ability to generate returns on its invested capital. This indicates that Yelp has been more efficient in utilizing its capital effectively to generate profits for its shareholders. The consistent increase in return on total capital from 2020 to 2023 suggests a positive direction in the company's financial performance and management effectiveness. The upward trend in this ratio reflects Yelp's improved operational efficiency and potentially increasing profitability.
Peer comparison
Dec 31, 2023