Clear Secure Inc (YOU)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Receivables turnover		1,168.82	373.82	47.57
DSO	days	0.31	0.98	7.67

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 1,168.82
= 0.31

Based on the data provided for Clear Secure Inc's Days Sales Outstanding (DSO) over the past three years, we observe a significant trend. The DSO has been decreasing consistently from 7.67 days in 2021 to 0.31 days in 2023.

A lower DSO indicates that the company is collecting its accounts receivable more efficiently and quickly, which is generally a positive sign. It suggests that the company is able to convert its sales into cash faster, improving its working capital management and liquidity position.

The decreasing trend in DSO over the years could be attributed to more effective credit policies, improved collection procedures, better customer relationships, or a shift towards higher-quality customers who pay promptly. A lower DSO also reduces the risk of bad debts and the need for extensive financing to cover outstanding receivables.

Overall, the declining trend in DSO for Clear Secure Inc indicates better receivables management and improved cash flow efficiency, which can have positive implications for the company's financial health and operational performance.