Clear Secure Inc (YOU)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Revenue	US$ in thousands	614,797	436,994	253,595
Total current assets	US$ in thousands	770,034	741,600	653,078
Total current liabilities	US$ in thousands	552,049	397,473	264,591
Working capital turnover		2.82	1.27	0.65

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $614,797K ÷ ($770,034K – $552,049K)
= 2.82

Clear Secure Inc's working capital turnover has improved significantly over the past three years, from 0.65 in 2021 to 1.27 in 2022, and further to 2.82 in 2023. This indicates that the company is utilizing its working capital more efficiently to generate sales revenue. A higher working capital turnover ratio reflects fewer resources tied up in working capital relative to sales, which is generally a positive sign of efficiency.

The increasing trend in working capital turnover suggests that Clear Secure Inc has been able to better manage its current assets and liabilities over time. This improvement may be attributed to more effective inventory management, tighter control over accounts receivable and payable, or overall improvements in the company's operational efficiency.

It is important to note that a high working capital turnover ratio may also indicate a need for careful monitoring of working capital levels to ensure that the company has enough liquidity to support its operations. Overall, Clear Secure Inc's improving working capital turnover ratio is a positive indicator of the company's financial health and operational efficiency.