Clear Secure Inc (YOU)

Short-term

Turnover ratios

Clear Secure Inc's activity ratios provide insight into how efficiently the company is managing its assets and operations.

1. Inventory Turnover:
- The inventory turnover ratio measures how many times a company sells and replaces its inventory during a specific period.
- Clear Secure Inc's inventory turnover has generally been stable over the years, ranging between 5.27 to 6.15 times.
- A higher inventory turnover indicates efficient inventory management, as Clear Secure Inc is selling its inventory relatively quickly.

2. Receivables Turnover:
- Unfortunately, data for Clear Secure Inc's receivables turnover is not available for analysis.
- This ratio typically assesses how efficiently a company is collecting its receivables from customers.

3. Payables Turnover:
- Data for Clear Secure Inc's payables turnover is not provided in the information.
- Payables turnover ratio evaluates how efficiently a company pays its suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue.
- Clear Secure Inc's working capital turnover has fluctuated significantly over the years, from 0.65 to 40.20 times.
- A higher working capital turnover ratio implies effective management of working capital, indicating the company is generating significant sales for each unit of working capital employed.

In conclusion, from the available activity ratios, Clear Secure Inc appears to demonstrate relatively efficient inventory management and working capital utilization. However, the lack of data for receivables and payables turnover limits a comprehensive analysis of the company's overall efficiency in managing its working capital cycle.

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Average number of days

Clear Secure Inc's Days of Inventory on Hand (DOH) has increased steadily from 64.44 days in 2020 to 69.26 days in 2022 before experiencing a decrease to 59.38 days in 2023. However, there is missing data for 2024. This indicates that the company is holding inventory for a longer period, which may tie up capital and impact liquidity.

The Days of Sales Outstanding (DSO) and Number of Days of Payables data are not provided, making it challenging to assess the company's efficiency in collecting receivables and managing payables. Without this information, we cannot fully evaluate Clear Secure Inc's cash conversion cycle and working capital management.

In summary, while the trend in Days of Inventory on Hand suggests some challenges in inventory management, the lack of DSO and payables information limits our ability to provide a comprehensive analysis of Clear Secure Inc's activity ratios.

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Long-term

The Fixed Asset Turnover ratio for Clear Secure Inc has shown a declining trend from 2020 to 2021, indicating that the company is generating fewer sales relative to its investment in fixed assets. However, this ratio improved significantly in 2022, reaching 7.55, suggesting that the company became more efficient in utilizing its fixed assets to generate sales. The data for 2023 and 2024 is unavailable, so it is difficult to assess the trend in those years.

In contrast, the Total Asset Turnover ratio shows a different trend. It was relatively low in 2020 at 0.99, indicating that the company was not generating significant sales compared to its total assets. The ratio dropped sharply in 2021 to 0.31, implying a significant decrease in sales generated per dollar of total assets. However, there was an improvement in 2022, with the ratio increasing to 0.42, and further increases in 2023 and 2024 to 0.59 and 0.64, respectively. This suggests that Clear Secure Inc became more efficient in utilizing its total assets to generate sales over these years.

Overall, while the Fixed Asset Turnover ratio showed some fluctuations, the Total Asset Turnover ratio demonstrated a more positive trend, indicating improvements in the company's efficiency in generating sales relative to its total assets during the years analyzed.