Clear Secure Inc (YOU)

Payables turnover

		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
Cost of revenue (ttm)	US$ in thousands	432,648	422,962	417,647	417,111	444,756	490,297	473,878	446,630	401,221	326,557	311,973
Payables	US$ in thousands	10,876	8,857	7,066	11,781	14,075	3,974	11,172	7,951	8,793	10,556	6,701	8,808	10,034	7,024
Payables turnover		39.78	47.75	59.11	35.41	31.60	123.38	42.42	56.17	45.63	30.94	46.56

September 30, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $432,648K ÷ $10,876K
= 39.78

Clear Secure Inc's payables turnover ratio has shown fluctuations over the past few quarters. The payables turnover ratio measures how efficiently a company manages its trade payables by comparing the cost of goods sold to average accounts payable during a specific period.

Looking at the trend, the payables turnover ratio has been volatile, indicating variability in how quickly the company is paying its suppliers. The ratio was highest in June 2023 at 123.38, suggesting that Clear Secure Inc was able to pay off its suppliers relatively quickly during that period.

However, the ratio decreased significantly in the following quarters, reaching its lowest point in September 2024 at 31.60. This drop may indicate a lengthening of the company's payment cycle, resulting in a slower turnover of payables compared to previous periods.

Overall, it is important for Clear Secure Inc to closely monitor its payables turnover ratio to ensure efficient management of its trade payables, as a consistently low ratio may indicate potential liquidity or operational issues within the business.