Clear Secure Inc (YOU)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 63.51% | 62.28% | 63.18% | 58.68% | 68.06% |
| Operating profit margin | 15.99% | 3.28% | -29.50% | -45.26% | -8.20% |
| Pretax margin | 8.65% | 8.25% | -26.86% | -45.26% | -4.03% |
| Net profit margin | 22.02% | 4.58% | -26.39% | -45.35% | -4.03% |
Clear Secure Inc's profitability ratios show varying trends over the years.
1. Gross Profit Margin: The gross profit margin has fluctuated, starting at 68.06% in 2020 and declining to 58.68% in 2021 before increasing to 63.18% in 2022 and 62.28% in 2023. It then improved to 63.51% by the end of 2024. This ratio indicates the company's ability to generate profit from its core business activities after deducting direct costs.
2. Operating Profit Margin: Clear Secure Inc faced challenges in operating profitability in 2020 and 2021, as indicated by negative figures of -8.20% and -45.26% respectively. However, the company started recovering in 2022 with a margin of -29.50%, further improving to 3.28% in 2023 and 15.99% in 2024. This ratio reflects the efficiency of the company in managing its operating expenses.
3. Pretax Margin: The pretax margin was negative in 2020 and 2021 at -4.03% and -45.26% respectively. The company showed improvement in 2022 with a margin of -26.86%, and significant progress in 2023 and 2024 with margins of 8.25% and 8.65% respectively. This ratio indicates the company's ability to generate profits before accounting for taxes.
4. Net Profit Margin: Clear Secure Inc struggled with profitability in 2020 and 2021, with negative net profit margins of -4.03% and -45.35% respectively. However, the company started improving in 2022 with a margin of -26.39% and significantly increased profitability in 2023 and 2024, achieving margins of 4.58% and 22.02% respectively. The net profit margin reflects the company's ability to generate profit from its total revenues after deducting all expenses, including interest and taxes.
Overall, while Clear Secure Inc faced challenges in profitability in the initial years, there has been a noticeable improvement over the years, especially in the operating, pretax, and net profit margins, indicating the company's efforts to enhance efficiency and profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.31% | 1.93% | -12.44% | -14.14% | -8.15% |
| Return on assets (ROA) | 14.20% | 2.69% | -11.13% | -14.17% | -4.01% |
| Return on total capital | 62.11% | 8.63% | -40.37% | -41.40% | -22.98% |
| Return on equity (ROE) | 85.54% | 12.05% | -39.66% | -41.49% | -11.30% |
Clear Secure Inc's profitability ratios have shown significant fluctuations over the past five years.
1. Operating return on assets (Operating ROA) has improved from negative percentages to a positive figure. It was -8.15% in December 2020, dropping further to -14.14% by December 2021, then recovering slightly to -12.44% by December 2022. However, a noticeable turnaround occurred in December 2023 when Operating ROA turned positive at 1.93%, demonstrating a steady increase to 10.31% by December 2024.
2. Return on assets (ROA) also exhibited a similar pattern, starting at -4.01% in December 2020 and dropping to -14.17% by December 2021. However, there was a significant reversal in fortunes in December 2023 with a ROA of 2.69%, increasing substantially to 14.20% by December 2024.
3. Return on total capital experienced deep negative percentages in the initial years, with -22.98% in December 2020 and -41.40% by December 2021. The situation began to improve in December 2023 with a return of 8.63% and a remarkable rebound to 62.11% by December 2024.
4. Return on equity (ROE) followed a similar trajectory as the other ratios, starting at -11.30% in December 2020, declining sharply to -41.49% by December 2021. The positive trend emerged in December 2023 with a ROE of 12.05%, skyrocketing to 85.54% by December 2024, indicating a significant improvement in the company's profitability as measured by shareholder equity.
Overall, the trend indicates a turnaround in Clear Secure Inc's financial performance, transitioning from negative profitability ratios to positive figures, especially noticeable in the later years analyzed.