Clear Secure Inc (YOU)

Short-term

Turnover ratios

1. Inventory Turnover Ratio:
- The inventory turnover ratio for Clear Secure Inc has shown some fluctuations over the years, ranging from a low of 3.37 to a high of 6.35.
- Generally, a higher inventory turnover ratio indicates that Clear Secure Inc is selling its inventory more efficiently. The increase in the ratio from 3.37 to 6.35 over the analyzed period suggests better inventory management.

2. Receivables Turnover Ratio:
- There is no data available for the receivables turnover ratio for Clear Secure Inc, indicating a lack of information on how quickly the company collects its receivables.

3. Payables Turnover Ratio:
- Similar to receivables turnover, there is no data provided for the payables turnover ratio. This implies that information on how quickly Clear Secure Inc pays its suppliers is not accessible.

4. Working Capital Turnover Ratio:
- The working capital turnover ratio for Clear Secure Inc has shown a significant improvement over the years, increasing from 0.47 to 40.20.
- A higher working capital turnover ratio indicates that Clear Secure Inc is generating a higher level of revenue relative to its working capital. The substantial increase in this ratio suggests improved efficiency in utilizing the company's working capital.

In conclusion, based on the available activity ratios data, Clear Secure Inc seems to have made progress in managing its inventory efficiently and utilizing its working capital effectively. However, the lack of information on receivables and payables turnover ratios prevents a comprehensive analysis of the company's overall operational efficiency.

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Average number of days

The analysis of Clear Secure Inc's activity ratios reveals trends in its efficiency in managing inventory turnover, accounts receivable collection, and accounts payable payment periods over time.

1. Days of Inventory on Hand (DOH):
- Clear Secure Inc's DOH has fluctuated over the periods provided, ranging from a low of 57.45 days to a high of 108.17 days.
- A lower DOH indicates that the company is selling inventory more quickly, which can be a positive sign of efficient inventory management.
- The downward trend in DOH from June 2022 to December 2023 suggests an improvement in inventory turnover efficiency.
- However, the slight increase in DOH in the most recent period (December 2023) may warrant further investigation to ensure optimal inventory levels.

2. Days of Sales Outstanding (DSO):
- Unfortunately, no data is available for DSO, which indicates that there is no information to analyze the efficiency of accounts receivable collection.
- Without DSO data, it is challenging to assess how quickly Clear Secure Inc collects payments from customers, which is crucial for managing cash flow effectively.

3. Number of Days of Payables:
- Similarly, there is no data available for the number of days of payables, making it impossible to evaluate the company's payment period for its accounts payable.
- Understanding the payables period could provide insights into Clear Secure Inc's liquidity management and relationships with suppliers.

In summary, Clear Secure Inc's activity ratios reflect varying levels of efficiency in managing its inventory turnover, accounts receivable collection, and accounts payable payment periods. With missing data for DSO and payables, a comprehensive analysis of the company's overall working capital management and cash flow cycle is limited.

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Long-term

The Fixed Asset Turnover ratio measures how efficiently a company is using its fixed assets to generate sales. Clear Secure Inc's Fixed Asset Turnover ratio has fluctuated over the past years, with values ranging from 4.94 to 8.15. This indicates that the company's fixed assets have been increasingly utilized to generate sales, reaching a peak of 8.15 in June 30, 2023. However, there was a notable decline to 3.12 in September 30, 2023, suggesting a potential inefficiency in utilizing fixed assets during that period. The ratio then remained at lower values before becoming unavailable by the end of 2024.

On the other hand, the Total Asset Turnover ratio shows how effectively a company is utilizing all its assets to generate revenue. Clear Secure Inc's Total Asset Turnover ratio exhibited a declining trend, starting at 0.99 in December 31, 2020, and gradually decreasing to 0.64 by the end of December 31, 2024. This decreasing trend suggests that the company may have been less efficient in generating sales revenue using its total assets over the years. However, it is worth noting that the ratio slightly increased in the last quarter of 2024 to 0.64, indicating a potential improvement in asset utilization during that period.

Overall, analyzing both the Fixed Asset Turnover and Total Asset Turnover ratios can provide insights into Clear Secure Inc's efficiency in utilizing its assets to generate sales revenue, highlighting fluctuations and trends in asset management efficiency over the years.