Yelp Inc (YELP)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.32 | 1.35 | 1.43 | 1.40 | 1.35 |
Yelp Inc's solvency ratios for the period from December 31, 2020, to December 31, 2024, reflect a strong financial position with consistently low debt levels in relation to its assets, capital, and equity. The Debt-to-assets ratio remained at 0.00 throughout the period, indicating that the company's total debt was effectively non-existent in relation to its total assets.
Similarly, the Debt-to-capital ratio and Debt-to-equity ratio also stood at 0.00 across all the years, showcasing Yelp's ability to finance its operations primarily through equity and capital rather than through debt. This emphasizes the company's solid solvency position and ability to meet its financial obligations without relying heavily on borrowed funds.
Furthermore, the Financial leverage ratio, which measures the extent to which the company uses debt to finance its operations, remained relatively stable over the years, ranging from 1.32 to 1.43. This indicates that Yelp's capital structure was not significantly leveraged, further supporting the company's financial stability and resilience.
Overall, Yelp Inc's solvency ratios suggest a conservative approach to debt management and a strong financial foundation, positioning the company well to weather economic uncertainties and sustain long-term growth.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | — | 1.80 | 291.67 | -22.97 |
Interest coverage ratio indicates a company's ability to meet its interest obligations on outstanding debt. For Yelp Inc, the interest coverage ratio has shown significant fluctuations over the years. As of December 31, 2020, the ratio was a negative value of -22.97, indicating that the company's earnings were insufficient to cover its interest expenses. However, by December 31, 2021, the interest coverage ratio improved substantially to 291.67, suggesting that Yelp had a strong ability to meet its interest obligations based on its earnings.
The following year, as of December 31, 2022, the interest coverage ratio dropped to 1.80, which may raise concerns about the company's ability to cover its interest payments comfortably. The absence of data for December 31, 2023, and December 31, 2024, prevents a complete assessment of the company's recent performance in this aspect.
Overall, the fluctuations in Yelp Inc's interest coverage indicate varying levels of financial health and risk associated with its debt obligations. Investors and creditors may closely monitor this metric to gauge the company's ability to manage its debt in the long term.