Clear Secure Inc (YOU)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Inventory turnover | 11.08 | 14.61 | 14.27 | |
| DOH | days | 32.95 | 24.98 | 25.57 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 11.08
= 32.95
Clear Secure Inc's days of inventory on hand (DOH) has shown an upward trend over the past three years. From 2021 to 2022, there was a slight increase in DOH from 25.57 days to 24.98 days. However, there was a noticeable jump in DOH in 2023, reaching 32.95 days.
This increase in DOH indicates that Clear Secure Inc is taking longer to sell its inventory. A higher DOH value may suggest that the company is facing difficulties in managing its inventory efficiently, which could result in increased carrying costs, potential obsolescence, or higher storage costs.
It is important for Clear Secure Inc to closely monitor its inventory levels and adjust its inventory management practices to optimize efficiency and reduce costs associated with excess inventory. Further analysis of the underlying reasons for the increase in DOH in 2023 would be beneficial for identifying potential areas of improvement in the company's inventory management processes.
Peer comparison
Dec 31, 2023