Clear Secure Inc (YOU)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 169,676 | 28,108 | -115,436 | -115,171 | -9,310 |
| Total stockholders’ equity | US$ in thousands | 198,353 | 233,329 | 291,065 | 277,613 | 82,355 |
| ROE | 85.54% | 12.05% | -39.66% | -41.49% | -11.30% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $169,676K ÷ $198,353K
= 85.54%
Clear Secure Inc's return on equity (ROE) has shown significant fluctuations over the past five years. The company experienced negative ROE in the years ending December 31, 2020 (-11.30%), December 31, 2021 (-41.49%), and December 31, 2022 (-39.66%), indicating that its net income was insufficient to generate adequate returns for shareholders.
However, there was a positive turnaround in the year ending December 31, 2023, with an ROE of 12.05%, suggesting that Clear Secure Inc began to efficiently utilize its equity to generate profits for shareholders. This positive trend continued significantly in the latest year, ending December 31, 2024, with an impressive ROE of 85.54%.
The substantial improvement in ROE from negative figures to a high positive percentage indicates that Clear Secure Inc may have implemented strategic changes to enhance operational efficiency, profitability, and overall financial performance. Shareholders should monitor future ROE trends to assess the company's continued ability to generate strong returns on their equity investment.
Peer comparison
Dec 31, 2024