Yelp Inc (YELP)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 151,045 | 79,043 | 15,141 | 33,834 | -93,112 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 743,969 | 749,534 | 710,324 | 751,318 | 854,534 |
| Return on total capital | 20.30% | 10.55% | 2.13% | 4.50% | -10.90% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $151,045K ÷ ($—K + $743,969K)
= 20.30%
The return on total capital for Yelp Inc has shown a varying trend over the analyzed period. The return on total capital was negative at -10.90% as of December 31, 2020, indicating that the company was not efficiently utilizing its total capital to generate returns. However, there was a significant improvement in performance as of December 31, 2021, with the return on total capital improving to 4.50%.
Subsequently, there was a slight decline in the return on total capital to 2.13% as of December 31, 2022, suggesting a moderation in the company's ability to generate returns on its total capital. However, Yelp Inc demonstrated a strong performance in the following years, with the return on total capital increasing to 10.55% as of December 31, 2023, and further improving to 20.30% as of December 31, 2024.
Overall, the positive trend in the return on total capital for Yelp Inc from 2020 to 2024 indicates an enhanced efficiency in utilizing its total capital to generate returns, with a particularly notable performance in the later years of the period analyzed.
Peer comparison
Dec 31, 2024