Yelp (WBO:YELP) ROCE %

: 11.81% (As of Dec. 2023)

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ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Yelp's annualized ROCE % for the quarter that ended in Dec. 2023 was 11.81%.

Yelp ROCE % Historical Data

The historical data trend for Yelp's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Yelp Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

3.51

-3.43

3.45

7.01

9.32

Yelp Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %																15.51	-3.17	9.09	20.39	11.81

Yelp ROCE % Calculation

Yelp's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	72.482	/	( ( (959.03 - 172.586)	+	(930.501 - 161.267) )	/ 2 )
	=	72.482	/	( (786.444	+	769.234)	/ 2 )
	=	72.482	/	777.839
	=	9.32 %

Yelp's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	91.756	/	( ( (962.597 - 177.736)	+	(930.501 - 161.267) )	/ 2 )
	=	91.756	/	( ( 784.861	+	769.234 )	/ 2 )
	=	91.756	/	777.0475
	=	11.81 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

Yelp (WBO:YELP) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Yelp ROCE % Related Terms

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Yelp (WBO:YELP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Yelp Inc (WBO:YELP) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

YELP:USA Y9L:Germany Y9L:Germany YELP:Argentina

Address

350 Mission Street, 10th Floor, San Francisco, CA, USA, 94105

Website

https://www.yelp.com

Yelp Inc operates in the online content market based in the United States. It provides a web-based platform and mobile application to bridge the gap between businesses and consumers. The platform assists consumers through product reviews, tips, photos and videos thereby enabling them in making better buying decisions and posting their feedbacks. Its products and services includes Advertising Products and Business Page Products. In addition, it also lets the buyers directly transact with businesses directly through its platform. Yelp generates revenue mainly from the sale of advertising on its website and mobile app to businesses. The company generates majority of the revenue from United States.