Clear Secure Inc (YOU)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Gross profit margin | 32.15% | -2.21% | -9.76% |
| Operating profit margin | 3.28% | -29.53% | -45.32% |
| Pretax margin | 4.69% | -15.48% | -14.14% |
| Net profit margin | 4.57% | -15.01% | -14.23% |
Clear Secure Inc has shown significant improvement in profitability ratios over the past three years. In 2023, the gross profit margin increased to 32.15% from negative values in the previous two years, indicating a better control over cost of goods sold. The operating profit margin also improved to 3.28% in 2023, reflecting enhanced operational efficiency compared to significant losses in 2021 and 2022.
Moreover, the pretax margin increased to 4.69% in 2023, indicating better management of operating expenses and other costs. The net profit margin also showed improvement, reaching 4.57% in 2023, reflecting the company's ability to generate more profit for each dollar of revenue.
Overall, Clear Secure Inc's profitability ratios have shown a positive trend, highlighting the company's efforts in enhancing its profitability and financial performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.93% | -12.44% | -14.14% |
| Return on assets (ROA) | 2.69% | -6.32% | -4.44% |
| Return on total capital | 8.63% | -44.34% | -41.40% |
| Return on equity (ROE) | 12.05% | -22.53% | -13.00% |
Clear Secure Inc's profitability ratios have shown significant improvements over the past three years.
1. Operating return on assets (Operating ROA) has improved from negative figures in 2021 and 2022 to a positive 1.93% in 2023, indicating that the company is generating operating profits more efficiently relative to its asset base.
2. Return on assets (ROA) has also shown a positive trend, increasing from negative values in the previous two years to 2.69% in 2023. This suggests that Clear Secure Inc has become more effective at utilizing its assets to generate profits.
3. Return on total capital reflects a notable improvement, with the ratio increasing to 8.63% in 2023 from significantly negative figures in the two preceding years. This indicates that the company has been able to generate better returns on the total capital invested in the business.
4. Return on equity (ROE) has shown a consistent positive improvement as well, with the ratio increasing to 12.05% in 2023 from negative values in the prior two years. This demonstrates that Clear Secure Inc has been able to provide better returns to its shareholders relative to their equity investment.
Overall, the increasing profitability ratios indicate that Clear Secure Inc has been able to enhance its operational efficiency and profitability, which may be attributed to improved management strategies and operational performance. However, it is important to continue monitoring these ratios over time to ensure sustained improvement and financial health of the company.