Clear Secure Inc (YOU)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 59.38 | 69.26 | 67.83 | 64.44 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 59.38 | 69.26 | 67.83 | 64.44 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
Clear Secure Inc's cash conversion cycle, a metric that measures how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales, has been fluctuating over the years.
As of December 31, 2020, the company's cash conversion cycle stood at 64.44 days, indicating that it took approximately 64 days for Clear Secure Inc to convert its investments into cash. Over time, the cash conversion cycle increased to 67.83 days by December 31, 2021, and further to 69.26 days by December 31, 2022. These increases suggest a lengthening in the time required for the company to recover its cash invested in operations.
However, on December 31, 2023, there was a significant improvement as the cash conversion cycle decreased to 59.38 days, which may indicate enhanced efficiency in managing inventory and collecting receivables. The data for December 31, 2024, shows a cash conversion cycle of 0.00 days, which could be an anomaly or a data issue.
Overall, Clear Secure Inc's cash conversion cycle has experienced fluctuations, with some periods showing improvement and others showing a lengthening of the cycle. It is important for the company to closely monitor and manage its working capital components to ensure optimal cash flow management and operational efficiency.
Peer comparison
Dec 31, 2024