Yelp Inc (YELP)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 749,534 | 710,324 | 751,318 | 854,534 | 754,991 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $749,534K
= 0.00
Based on the data provided for Yelp Inc's debt-to-equity ratio over the past five years, the company consistently reported a debt-to-equity ratio of 0.00. This indicates that Yelp has not utilized any debt to finance its operations and growth during this period. A debt-to-equity ratio of 0.00 signifies that the company's total liabilities are equal to zero or extremely minimal compared to its equity, suggesting a low financial risk and a strong financial position with a high proportion of equity financing.
Yelp's consistent zero debt-to-equity ratio could be a result of the company's strategic financial management decisions, risk aversion to debt, or a strong ability to generate internal funds to support its operations and investments. While having no debt can reflect positively on the company's financial stability and creditworthiness, it is essential to consider the implications of solely relying on equity financing, such as potentially limiting growth opportunities or missing out on potential tax advantages that debt financing could provide.
In conclusion, Yelp Inc's consistent debt-to-equity ratio of 0.00 over the past five years highlights its conservative financial approach and strong reliance on equity financing, which may have contributed to its stable financial position and low financial risk profile.
Peer comparison
Dec 31, 2023