Clear Secure Inc (YOU)
Liquidity ratios
| 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 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.07 | 1.13 | 1.19 | 1.39 | 1.63 | 1.62 | 1.69 | 1.87 | 2.07 | 2.12 | 2.30 | 2.47 | 3.26 | 1.43 |
| Quick ratio | 0.98 | 1.06 | 1.12 | 1.31 | 1.54 | 1.54 | 1.61 | 1.78 | 1.98 | 2.04 | 2.21 | 2.35 | 3.15 | 1.27 |
| Cash ratio | 0.98 | 0.06 | 0.10 | 1.31 | 1.54 | 1.54 | 1.61 | 1.77 | 1.97 | 2.03 | 2.18 | 2.33 | 3.13 | 1.26 |
Clear Secure Inc's liquidity ratios have shown fluctuating trends over the past few quarters. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has been declining gradually from 3.26 in December 2022 to 1.07 in September 2024. This indicates a decreasing ability to meet short-term obligations.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also shows a similar declining trend, from 3.15 in December 2022 to 0.98 in September 2024. This suggests a potential issue with the company's ability to quickly settle its current liabilities without relying on inventory.
On the other hand, the cash ratio, which only considers cash and cash equivalents as a proportion of current liabilities, has been more volatile. While it was high at 3.13 in September 2023, it dropped to 0.06 in June 2024, indicating a potential liquidity crunch during that period.
Overall, Clear Secure Inc's liquidity position has weakened over the quarters, as seen in the declining current and quick ratios. The significant fluctuations in the cash ratio also suggest variability in the company's ability to cover its short-term obligations with cash on hand. Management should closely monitor liquidity levels and take proactive measures to ensure the company's financial stability and ability to meet its obligations in a timely manner.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of Clear Secure Inc has varied significantly over the past few quarters, indicating fluctuations in its working capital management efficiency.
As of September 30, 2024, the company's cash conversion cycle was negative, indicating that Clear Secure was able to convert its inventory and receivables into cash more quickly than it paid its suppliers. This negative cycle suggests efficient management of working capital, where the company is able to generate cash quickly from its operations.
In contrast, the cash conversion cycle for the previous quarter on June 30, 2024, was significantly high at 321.72 days, indicating that Clear Secure took a much longer time to convert its investments in inventory and accounts receivable into cash, while also paying its suppliers. This may suggest that the company faced challenges in managing its working capital efficiently during that period.
Overall, the company has experienced fluctuations in its cash conversion cycle, with some quarters showing efficient working capital management and others indicating challenges that may have impacted its liquidity and cash flow. Clear Secure should focus on optimizing its working capital management to ensure a more stable and effective cash conversion cycle in the future.