Clear Secure Inc (YOU)

Days of sales outstanding (DSO)

		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
Receivables turnover		1,153.01	1.11	1.04	1,168.64	776.91	567.16	498.23	374.16	185.46	113.22	39.06
DSO	days	0.32	329.36	349.81	0.31	0.47	0.64	0.73	0.98	1.97	3.22	9.34

September 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 1,153.01
= 0.32

The Days Sales Outstanding (DSO) for Clear Secure Inc has shown significant fluctuations over the past few quarters. In the most recent quarter, ending September 30, 2024, the DSO was exceptionally low at 0.32 days, indicating that the company is efficient in collecting its accounts receivable.

However, looking back at the previous quarter, ending June 30, 2024, the DSO spiked to 329.36 days, which is a major cause for concern. This sudden increase suggests a significant delay in collecting receivables compared to the prior quarter.

The DSO for March 31, 2024, and December 31, 2023, were also high at 349.81 days and 0.31 days, respectively, which further highlights the inconsistency in the company's collection process during those periods.

It is worth noting that Clear Secure Inc made improvements in managing its receivables in the first half of 2023, with DSO decreasing to less than 1 day. However, by the end of 2022, DSO had increased to 0.98 days, indicating a lengthening collection period compared to the earlier periods.

The DSO for the quarters ending September 30, 2022, and June 30, 2022, at 1.97 days and 3.22 days, respectively, suggest a somewhat prolonged collection cycle during those periods. Additionally, the DSO for March 31, 2022, and December 31, 2021, were relatively higher at 9.34 days and 0.47 days, respectively, indicating variations in the company's collection efficiency.

In summary, Clear Secure Inc's DSO has shown significant fluctuations over the past few quarters, with periods of efficient collections interspersed with spikes in the collection period. The company should pay close attention to managing its accounts receivable effectively to ensure a more stable and consistent cash flow.