Clear Secure Inc (YOU)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Cost of revenue	US$ in thousands	417,110	446,630	278,334
Inventory	US$ in thousands	37,656	30,562	19,500
Inventory turnover		11.08	14.61	14.27

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $417,110K ÷ $37,656K
= 11.08

Clear Secure Inc's inventory turnover has fluctuated over the past three years. The company's inventory turnover was 14.27 times in 2021, which decreased slightly to 14.61 times in 2022, before further declining to 11.08 times in 2023. This indicates that Clear Secure Inc has been managing its inventory less efficiently in 2023 compared to the previous two years. A lower inventory turnover ratio suggests that the company is holding onto inventory for a longer period before selling it, which may tie up capital and potentially lead to increased carrying costs or obsolete inventory. Further analysis of the reasons behind this decrease in inventory turnover is warranted to assess the impact on the company's overall financial performance and operations.