Yelp Inc (YELP)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 152,213 | 123,799 | 119,020 | 97,446 | 79,043 | 74,214 | 35,300 | 21,074 | 10,734 | -2,492 | 2,424 | -16,013 | -21,869 | -14,335 | -12,486 | -30,602 | -35,069 | -31,917 | -32,091 | 12,143 |
| Interest expense (ttm) | US$ in thousands | 0 | 5,212 | 5,212 | 5,212 | 10,424 | 7,748 | 9,755 | 10,284 | 6,072 | 3,569 | 1,593 | 1,098 | 116 | 114 | 90 | 247 | 2,335 | 4,686 | 7,509 | 11,061 |
| Interest coverage | — | 23.75 | 22.84 | 18.70 | 7.58 | 9.58 | 3.62 | 2.05 | 1.77 | -0.70 | 1.52 | -14.58 | -188.53 | -125.75 | -138.73 | -123.89 | -15.02 | -6.81 | -4.27 | 1.10 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $152,213K ÷ $0K
= —
The interest coverage ratio measures a company's ability to meet its interest obligations on its outstanding debt. A higher ratio indicates that the company is more capable of covering its interest expenses, while a lower ratio suggests potential financial difficulties in meeting interest payments.
Looking at the interest coverage ratio of Yelp Inc over the reported periods, we observe fluctuations in the company's ability to cover its interest payments. The trend reveals a concerning pattern as the ratio frequently dips into negative territory, indicating that the company may have had difficulty meeting its interest obligations with its operating income.
Specifically, from March 2020 to December 2021, Yelp Inc's interest coverage remained consistently negative, with ratios ranging from -123.89 to -188.53. These figures suggest severe challenges in meeting interest expenses during this period. However, there was a notable improvement in the trend from March 2022 onwards, with the interest coverage ratio turning positive and gradually increasing to 18.70 by March 2024. This positive shift indicates a potential strengthening of Yelp Inc's ability to cover its interest payments with its operational earnings.
Overall, the analysis of Yelp Inc's interest coverage ratio underscores the importance of monitoring the company's financial health and its ability to meet its debt obligations. Investors and stakeholders should closely follow the trend in this ratio to assess the company's financial stability and its capacity to manage debt effectively.
Peer comparison
Dec 31, 2024