Clear Secure Inc (YOU)

Cash conversion cycle

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
Days of inventory on hand (DOH) days 32.95 28.53 23.49 22.45 24.98 26.23 23.51 25.65
Days of sales outstanding (DSO) days 0.32 329.36 349.81 0.31 0.47 0.64 0.73 0.98 1.97 3.22 9.34
Number of days of payables days 9.18 7.64 6.18 10.31 11.55 2.96 8.61 6.50 8.00 11.80 7.84
Cash conversion cycle days -8.86 321.72 343.64 22.95 17.45 21.17 14.58 19.45 20.20 14.94 27.15

September 30, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 0.32 – 9.18
= -8.86

The cash conversion cycle for Clear Secure Inc has shown considerable fluctuations over the past several quarters. In the most recent quarter, ending Sep 30, 2024, the company's cash conversion cycle was negative, indicating a rapid cycle where the company is able to convert its investments in inventory and accounts receivable into cash quickly.

However, the previous quarter, ending Jun 30, 2024, saw a significant increase in the cash conversion cycle to 321.72 days, reflecting a prolonged time required to convert its investments into cash. This spike may indicate inefficiencies in managing inventory and collecting accounts receivable during that period.

Looking back further, the company experienced a high cash conversion cycle of 343.64 days in the quarter ending Mar 31, 2024, followed by a comparatively lower cycle of 22.95 days in the quarter ending Dec 31, 2023.

Overall, Clear Secure Inc's cash conversion cycle has been volatile, with fluctuations between negative cycles indicating efficiency in operations and positive cycles reflecting challenges in managing working capital. It is essential for the company to focus on optimizing inventory levels, improving accounts receivable collection, and managing payable periods to ensure a sustainable and efficient cash conversion cycle in the future.


Peer comparison

Sep 30, 2024