Clear Secure Inc (YOU)
Cash conversion cycle
| Dec 31, 2024 | 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 | Mar 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | 69.68 | 70.97 | 70.97 | 59.56 | 69.26 | 71.49 | 57.45 | 66.60 | 67.83 | 84.97 | 108.17 | 84.94 | 64.44 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 69.68 | 70.97 | 70.97 | 59.56 | 69.26 | 71.49 | 57.45 | 66.60 | 67.83 | 84.97 | 108.17 | 84.94 | 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 has shown fluctuations over the years, indicating changes in the efficiency of the company's cash management and working capital.
From December 31, 2020, to June 30, 2021, the cash conversion cycle increased significantly from 64.44 days to 108.17 days, suggesting that the company took longer to convert its investments in inventory and receivables into cash during this period. This prolonged cycle may signal potential issues with inventory management or delays in collecting receivables.
Subsequently, there was a notable improvement in the cash conversion cycle by December 31, 2021, where it decreased to 67.83 days. This may indicate that Clear Secure Inc made operational adjustments to streamline its working capital management.
The cycle continued to show fluctuations throughout 2022 and 2023, indicating ongoing efforts to optimize cash flows. By March 31, 2024, the cash conversion cycle dropped to 0.00 days, possibly suggesting an exceptionally efficient cash management system where the company is able to quickly convert its assets into cash.
Overall, by analyzing the trend in Clear Secure Inc's cash conversion cycle, it appears that the company has made efforts to enhance its working capital efficiency over time, leading to improved cash flow management and potentially better financial performance.
Peer comparison
Dec 31, 2024