Yelp Inc (YELP)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 983,567 | 980,208 | 964,978 | 993,477 | 1,014,720 | 1,027,320 | 1,033,290 | 1,021,680 | 1,015,920 | 1,030,330 | 1,023,170 | 1,044,910 | 1,050,530 | 1,079,070 | 1,105,240 | 1,135,380 | 1,154,950 | 1,138,950 | 1,073,480 | 1,085,220 |
| 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 |
| Financial leverage ratio | 1.32 | 1.33 | 1.31 | 1.38 | 1.35 | 1.39 | 1.46 | 1.45 | 1.43 | 1.47 | 1.42 | 1.44 | 1.40 | 1.38 | 1.38 | 1.37 | 1.35 | 1.40 | 1.37 | 1.42 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $983,567K ÷ $743,969K
= 1.32
The financial leverage ratio of Yelp Inc has fluctuated over the period from March 31, 2020, to December 31, 2024. The ratio indicates the proportion of the company's total debt to its total equity. A higher financial leverage ratio suggests that the company relies more on debt financing, which can magnify returns but also increase financial risk.
Yelp Inc's financial leverage ratio ranged from a low of 1.31 on June 30, 2024, to a high of 1.47 on September 30, 2022. The ratio has shown some volatility but generally remained within the range of 1.31 to 1.47 during this period. This indicates that the company's debt levels relative to its equity have fluctuated over time.
Monitoring the financial leverage ratio is crucial for investors and creditors to assess the company's risk exposure and financial stability. Changes in the ratio could signal shifts in the company's capital structure and its ability to meet debt obligations. It is important for management to carefully manage the balance between debt and equity financing to maintain a healthy financial position.
Peer comparison
Dec 31, 2024