Yelp Inc (YELP)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 152,213 | 123,799 | 119,020 | 97,446 | 79,043 | 74,214 | 35,300 | 21,074 | 10,734 | -2,492 | 2,424 | -16,013 | -21,869 | -14,335 | -12,486 | -30,602 | -35,069 | -31,917 | -32,091 | 12,143 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 20.46% | 16.74% | 16.19% | 13.50% | 10.55% | 10.03% | 4.98% | 2.99% | 1.51% | -0.36% | 0.34% | -2.21% | -2.91% | -1.83% | -1.55% | -3.70% | -4.10% | -3.91% | -4.11% | 1.59% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $152,213K ÷ ($—K + $743,969K)
= 20.46%
Yelp Inc's return on total capital has shown a fluctuating trend over the past few periods. The ratio was negative in the mid-2020 period, indicating that the company was not effectively utilizing its capital to generate returns for its shareholders. However, from March 2023 onwards, there has been a significant improvement in the return on total capital, with the ratio steadily increasing. This suggests that Yelp Inc has been able to enhance its efficiency in deploying capital to generate higher returns for its investors. By the end of December 2024, the return on total capital reached a substantial 20.46%, indicating a significant improvement in the company's capital utilization and profitability. It is crucial for investors and stakeholders to monitor this ratio to assess Yelp Inc's ability to generate returns from the total capital employed.
Peer comparison
Dec 31, 2024