Clear Secure Inc (YOU)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	770,488	613,579	437,434	253,953	230,796
Total current assets	US$ in thousands	662,218	770,034	741,600	653,078	171,636
Total current liabilities	US$ in thousands	643,054	552,049	397,473	264,591	146,104
Working capital turnover		40.20	2.81	1.27	0.65	9.04

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $770,488K ÷ ($662,218K – $643,054K)
= 40.20

Clear Secure Inc's working capital turnover has shown significant fluctuations over the years. In 2020, the working capital turnover was 9.04, indicating that the company generated $9.04 in revenue for every dollar of working capital. However, this ratio sharply decreased to 0.65 in 2021, suggesting a significant decline in efficiency in utilizing its working capital.

The following years saw improvements in the working capital turnover ratio, reaching 1.27 in 2022 and 2.81 in 2023. This indicates that Clear Secure Inc was able to generate more revenue relative to its working capital in those years compared to the previous year.

The most striking increase occurred in 2024 when the working capital turnover soared to 40.20. This implies that Clear Secure Inc significantly improved its utilization of working capital to generate substantial revenue, reflecting a highly efficient operation.

Overall, the trend in the working capital turnover ratio suggests fluctuations in the company's ability to efficiently convert working capital into revenue, with a notable improvement in 2024. Further analysis of the company's operations and financial health would be necessary to fully understand the reasons behind these fluctuations.