Yelp Inc (YELP)

Starting with Yelp Inc's solvency ratios, we observe that the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have consistently remained at 0.00 over the past five years. A debt-to-assets ratio of 0.00 indicates that the company has not taken on any debt to finance its assets, which is a positive sign for investors and creditors as it suggests Yelp Inc is not overly reliant on debt financing.

Moving on to the financial leverage ratio, we see a slight fluctuation over the same period, ranging from 1.35 to 1.43. The financial leverage ratio measures the extent to which the company relies on debt to finance its operations and growth. A ratio above 1 indicates that the company has more debt than equity in its capital structure. In Yelp Inc's case, the financial leverage ratio has generally been around 1.4, suggesting a moderate level of financial leverage.

Overall, Yelp Inc's solvency ratios indicate a conservative approach to capital structure management, with minimal reliance on debt financing. This can be seen as a strength, as it lowers the company's financial risk and enhances its financial stability. However, investors and analysts should continue to monitor these ratios to ensure Yelp Inc maintains a healthy balance between debt and equity in the future.

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Coverage ratios

The interest coverage ratio for Yelp Inc, as per the data provided, was not available for December 31, 2023 and December 31, 2020. However, on December 31, 2022, the interest coverage ratio was 271.95, indicating that the company was able to cover its interest expenses almost 272 times with its operating income. A higher interest coverage ratio is generally considered favorable as it suggests the company is comfortably able to meet its interest obligations from its operating profits. Unfortunately, without data for other years, it is difficult to ascertain the trend in Yelp Inc's interest coverage ratio over time.