Clear Secure Inc (YOU)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 20,138 | -129,064 | -114,933 |
| Long-term debt | US$ in thousands | — | — | — |
| Total stockholders’ equity | US$ in thousands | 233,329 | 291,065 | 277,613 |
| Return on total capital | 8.63% | -44.34% | -41.40% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $20,138K ÷ ($—K + $233,329K)
= 8.63%
Clear Secure Inc's return on total capital has shown significant fluctuations over the past three years. In 2023, the return on total capital was positive at 8.63%, indicating that the company generated a return on its total capital employed. This positive performance in 2023 is a notable improvement compared to the negative returns in the prior two years.
In 2022, Clear Secure Inc recorded a notably low return on total capital of -44.34%, reflecting a significant decline in the company's ability to generate returns on the total capital invested. This negative return indicates that the company experienced a substantial loss relative to its capital base.
Similarly, in 2021, the company reported a negative return on total capital of -41.40%, highlighting another year of poor performance in terms of capital utilization. The negative returns in both 2022 and 2021 suggest that Clear Secure Inc faced challenges in efficiently deploying its capital to generate profits during these periods.
Overall, the positive return on total capital in 2023 indicates an improvement in the company's performance compared to the previous years. However, the negative returns in 2022 and 2021 underscore the importance for Clear Secure Inc to enhance its capital utilization strategies and operational efficiency to consistently generate positive returns for its investors.
Peer comparison
Dec 31, 2023