Clear Secure Inc (YOU)

Working capital 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
Revenue (ttm)	US$ in thousands	736,776	698,738	661,864	614,704	571,803	526,891	479,299	437,394	389,842	341,481	293,936
Total current assets	US$ in thousands	595,737	713,766	743,635	770,034	781,043	806,545	784,599	741,600	706,484	702,585	668,345	653,078	700,555	233,559
Total current liabilities	US$ in thousands	557,685	633,300	624,777	552,049	478,272	496,766	464,598	397,473	340,584	331,980	290,405	264,591	214,817	163,381
Working capital turnover		19.36	8.68	5.57	2.82	1.89	1.70	1.50	1.27	1.07	0.92	0.78

September 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $736,776K ÷ ($595,737K – $557,685K)
= 19.36

The working capital turnover ratio for Clear Secure Inc has shown a significant improvement over the past few quarters. The ratio has steadily increased from 0.78 in December 2021 to 19.36 in September 2024. This indicates that the company is efficiently managing its working capital to generate sales.

A high working capital turnover ratio suggests that Clear Secure Inc is effectively utilizing its current assets to support its sales activities. This can be a positive sign of operational efficiency and effective management of inventory, accounts receivable, and accounts payable.

The substantial increase in the working capital turnover ratio over the quarters indicates that Clear Secure Inc has been able to convert its working capital into sales at a much faster pace, which can be indicative of improved liquidity and financial health. It also suggests that the company has optimized its working capital management to drive revenue growth and profitability.

Overall, the trend in Clear Secure Inc's working capital turnover ratio reflects an improvement in the company's operational efficiency and liquidity management, which can be seen as a positive indicator for investors and stakeholders.