Clear Secure Inc (YOU)

Short-term

Turnover ratios

Clear Secure Inc's activity ratios show trends in how efficiently the company is managing its assets and liabilities to generate sales.

1. Inventory turnover: The company's inventory turnover ratio has been fluctuating over the periods provided, indicating variation in how quickly the company sells its inventory. The decreasing trend since March 2023 suggests that Clear Secure Inc may be experiencing slower sales relative to its inventory levels.

2. Receivables turnover: Clear Secure Inc's receivables turnover has shown significant variability over the periods, with a spike in September 2024. A high receivables turnover ratio indicates that the company is efficiently collecting payment from customers, especially notable in the latest period.

3. Payables turnover: The payables turnover ratio demonstrates how quickly a company pays off its suppliers. Clear Secure Inc has shown inconsistent payables turnover, with periods of high and low turnover. A higher turnover suggests the company is paying its suppliers more quickly.

4. Working capital turnover: Clear Secure Inc's working capital turnover has been increasing, reflecting an improvement in how efficiently the company is using its working capital to generate revenue. The rising trend indicates better utilization of resources to support sales growth.

Overall, Clear Secure Inc may need to focus on managing its inventory levels more effectively to align with sales demand, maintain its efficient collection of receivables, and optimize payment cycles with suppliers to enhance overall operational efficiency and profitability.

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Average number of days

Days of inventory on hand (DOH) measures how quickly a company sells its inventory. Clear Secure Inc's DOH fluctuated over the periods, indicating changes in inventory management efficiency. The increase in DOH from March 2023 to September 2024 suggests the company may be holding more inventory than necessary, potentially tying up capital.

Days of sales outstanding (DSO) represents the average number of days it takes for Clear Secure Inc to collect payment after a sale. The significant fluctuations in DSO indicate inconsistent payment collection from customers. The high DSO in some periods could indicate potential issues with credit policies or customer payment behavior.

Number of days of payables shows how long Clear Secure Inc takes to pay its suppliers. The company's payables days show some variability, with longer payment periods observed in certain quarters. A higher number of days of payables can indicate better cash flow management in the short term but may strain supplier relationships if extended too far.

Overall, Clear Secure Inc should monitor and potentially optimize its inventory management, credit policies, and payment terms to improve efficiency and maintain positive relationships with both customers and suppliers.

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Long-term

Clear Secure Inc's long-term activity ratios provide insight into how effectively the company is utilizing its assets to generate revenue. The fixed asset turnover ratio has been consistently increasing over the past few quarters, indicating that Clear Secure is improving its efficiency in generating sales from its fixed assets. A high fixed asset turnover ratio of over 12 suggests that the company is making efficient use of its long-term assets to generate sales.

In contrast, the total asset turnover ratio has also shown an increasing trend over the quarters, although it is at a lower level compared to the fixed asset turnover ratio. The total asset turnover ratio measures the company's ability to generate sales from all its assets, including both fixed and current assets. An increase in the total asset turnover ratio indicates that Clear Secure is becoming more efficient in generating sales from its total asset base.

Overall, the increasing trends in both the fixed asset turnover and total asset turnover ratios suggest that Clear Secure Inc is effectively managing its assets to drive revenue growth and improve operational efficiency. These ratios indicate a positive outlook for the company's long-term asset utilization and operational performance.