Yelp Inc (YELP)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets 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 |
| 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 |
| Debt-to-equity 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 |
| 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 |
Yelp Inc's solvency ratios, such as the Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio, have consistently been at 0.00 over the past few years. This indicates that the company has not relied heavily on debt financing in relation to its assets, capital, or equity.
The Financial leverage ratio, which measures the extent of a company's financial leverage, has shown some fluctuation over the period analyzed. It started at 1.42 in March 31, 2020, decreased to 1.31 in June 30, 2024 but generally stayed within a range of 1.31 to 1.47. This suggests that Yelp Inc has maintained a relatively stable level of financial leverage over the years, with only minor variations.
Overall, based on the solvency ratios analyzed, Yelp Inc appears to have a strong financial position with low leverage and minimal reliance on debt to support its operations. This indicates a conservative approach to managing its financial obligations and suggests a lower risk of financial distress due to excessive debt levels.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio measures a company's ability to meet its interest obligations with its operating income. A higher ratio indicates a stronger ability to cover interest expenses.
Based on the provided data for Yelp Inc, the interest coverage ratio fluctuated significantly over the period. In March 2020, the ratio stood at 1.10, indicating that Yelp's operating income was only sufficient to cover its interest expenses by a small margin.
The ratio then declined sharply in the subsequent quarters, falling into negative territory from June 2020 to December 2021. A negative interest coverage ratio suggests that Yelp's operating income was insufficient to cover its interest expenses, which is a concerning sign for creditors and investors.
From March 2022 onwards, the interest coverage ratio began to improve, turning positive in June 2022. This improvement continued through the end of the data available, with the ratio reaching 22.84 in June 2024, indicating that Yelp's operating income was significantly higher than its interest expenses.
Overall, Yelp Inc experienced a period of financial strain in terms of covering its interest obligations, as indicated by the negative ratios recorded for several quarters. However, the company was able to turn the situation around and improve its interest coverage ratio significantly in later quarters, signaling a better financial position and ability to meet its debt obligations. Investors and creditors would likely closely monitor this ratio in future periods to gauge Yelp's financial health.