Yelp Inc (YELP)
Debt-to-capital ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 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 | 754,991 | 702,564 | 746,455 | 994,838 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $749,534K)
= 0.00
Based on the data provided on Yelp Inc's debt-to-capital ratio for the past eight quarters, it is evident that the company has maintained a debt-to-capital ratio of 0.00 consistently throughout this period. A debt-to-capital ratio of 0.00 implies that Yelp Inc has not utilized any debt in its capital structure and is entirely funded by equity.
This indicates that the company has not taken on any long-term debt obligations to finance its operations or investments during the analyzed period. Operating with a debt-to-capital ratio of 0.00 demonstrates Yelp Inc's financial stability and conservative approach to leverage, as it indicates that the company is not relying on debt to support its growth or operations.
While a debt-free capital structure can provide financial flexibility and lower financial risk, it is important to note that a balanced mix of debt and equity financing could potentially optimize the company's cost of capital and enhance shareholder returns in the long run.
Overall, Yelp Inc's consistent debt-to-capital ratio of 0.00 suggests a prudent financial management strategy, but the company may explore leveraging debt strategically to capitalize on growth opportunities and optimize its capital structure in the future.
Peer comparison
Dec 31, 2023