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Clear Secure Beneish M-Score

: -2.38 (As of Today)
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The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.38 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Clear Secure's Beneish M-Score or its related term are showing as below:

YOU' s Beneish M-Score Range Over the Past 10 Years
Min: -2.38   Med: 1.22   Max: 1.25
Current: -2.38

During the past 3 years, the highest Beneish M-Score of Clear Secure was 1.25. The lowest was -2.38. And the median was 1.22.


Clear Secure Beneish M-Score Historical Data

The historical data trend for Clear Secure's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Clear Secure Annual Data
Trend Dec19 Dec20 Dec21
Beneish M-Score
- - 1.18

Clear Secure Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - 1.18 1.25 -2.38

Competitive Comparison

For the Software - Application subindustry, Clear Secure's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Clear Secure Beneish M-Score Distribution

For the Software industry and Technology sector, Clear Secure's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Clear Secure's Beneish M-Score falls into.



Clear Secure Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Clear Secure for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.3203+0.528 * 1.0583+0.404 * 1.4601+0.892 * 1.5863+0.115 * 1.0894
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0833+4.679 * -0.2177-0.327 * 0.7411
=-2.38

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun22) TTM:Last Year (Jun21) TTM:
Total Receivables was $3.0 Mil.
Revenue was 102.723 + 90.539 + 80.659 + 67.558 = $341.5 Mil.
Gross Profit was 65.097 + 55.417 + 47.831 + 39.504 = $207.8 Mil.
Total Current Assets was $702.6 Mil.
Total Assets was $893.9 Mil.
Property, Plant and Equipment(Net PPE) was $76.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $15.9 Mil.
Selling, General, & Admin. Expense(SGA) was $230.1 Mil.
Total Current Liabilities was $332.0 Mil.
Long-Term Debt & Capital Lease Obligation was $24.3 Mil.
Net Income was -7.155 + -10.327 + -17.163 + -16.915 = $-51.6 Mil.
Non Operating Income was 0.465 + -0.268 + 0.355 + -0.011 = $0.5 Mil.
Cash Flow from Operations was 50.923 + 24.932 + 31.73 + 34.893 = $142.5 Mil.
Total Receivables was $1.4 Mil.
Revenue was 55.178 + 50.558 + 53.155 + 56.375 = $215.3 Mil.
Gross Profit was 31.042 + 30.64 + 36.651 + 40.326 = $138.7 Mil.
Total Current Assets was $233.6 Mil.
Total Assets was $303.8 Mil.
Property, Plant and Equipment(Net PPE) was $43.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.0 Mil.
Selling, General, & Admin. Expense(SGA) was $133.9 Mil.
Total Current Liabilities was $163.4 Mil.
Long-Term Debt & Capital Lease Obligation was $0.0 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(3.016 / 341.479) / (1.44 / 215.266)
=0.00883217 / 0.0066894
=1.3203

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(138.659 / 215.266) / (207.849 / 341.479)
=0.64412866 / 0.60867286
=1.0583

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (702.585 + 76.727) / 893.876) / (1 - (233.559 + 43.57) / 303.795)
=0.12816543 / 0.0877763
=1.4601

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=341.479 / 215.266
=1.5863

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(10.002 / (10.002 + 43.57)) / (15.869 / (15.869 + 76.727))
=0.18670201 / 0.17137889
=1.0894

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(230.081 / 341.479) / (133.894 / 215.266)
=0.67377789 / 0.62199325
=1.0833

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((24.277 + 331.98) / 893.876) / ((0 + 163.381) / 303.795)
=0.39855304 / 0.53780016
=0.7411

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(-51.56 - 0.541 - 142.478) / 893.876
=-0.2177

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Clear Secure has a M-score of -2.38 suggests that the company is unlikely to be a manipulator.


Clear Secure Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Clear Secure's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Clear Secure Business Description

Clear Secure logo
Traded in Other Exchanges
N/A
Address
65 East 55th Street, 17th Floor, New York, NY, USA, 10022
Clear Secure Inc is involved in the creation of a frictionless travel experience while enhancing security. Its secure identity platform uses biometrics to automate the identity verification process through lanes in airports which helps to make the travel experience safe and easy.
Executives
Liu Dennis W. officer: Chief Accounting Officer 65 EAST 55TH STREET, 17TH FLOOR NEW YORK NY 10022
General Atlantic (alc), L.p. 10 percent owner C/O GENERAL ATLANTIC SERVICE CO., L.P. 55 EAST 52ND STREET, 33RD FLOOR NEW YORK NY 10055
General Atlantic (lux) S.a R.l. 10 percent owner 412F ROUTE D'ESCH LUXEMBOURG P7 10055
General Atlantic Partners (lux), Scsp 10 percent owner 55 EAST 52ND STREET FLOOR 33 NEW YORK NY 10055
General Atlantic Genpar (lux) Scsp 10 percent owner 412F ROUTE D'ESCH LUXEMBOURG N4 2086
General Atlantic Partners (bermuda) Eu, L.p. 10 percent owner C/O GENERAL ATLANTIC SERVICE COMPANY LP 55 EAST 52ND STREET, 33RD FLOOR NEW YORK NY 10055
Gap (bermuda) L.p. 10 percent owner C/O GENERAL ATLANTIC SERVICE COMPANY 55 EAST 52ND ST. 32ND FLOOR NEW YORK NY 10055
General Atlantic Genpar (bermuda), L.p. 10 percent owner C/O GENERAL ATLANTIC SERVICE COMPANY,LLC 55 EAST 52ND ST. 32ND FLOOR NEW YORK NY 10055
General Atlantic Partners 100, L.p. 10 percent owner C/O GENERAL ATLANTIC SERVICE COMPANY,LP 55 EAST 52ND STREET, 33RD FLOOR NEW YORK NY 10055
Perrin Walter Catesby Iii officer: EVP, Growth 65 EAST 55TH STREET, 17TH FLOOR NEW YORK NY 10022
Comella Maria A. officer: Head of Public Affairs 65 EAST 55TH STREET, 17TH FLOOR NEW YORK NY 10022
Cornick Kenneth L. director, 10 percent owner, officer: President & CFO 65 EAST 55TH STREET, 17TH FLOOR NEW YORK NY 10022
Jouhal Chiranjiv S. officer: Chief Technology Officer 65 EAST 55TH STREET, 17TH FLOOR NEW YORK NY 10022
Levine Matthew officer: GC & Chief Privacy Officer 65 EAST 55TH STREET, 17TH FLOOR NEW YORK NY 10022
Patterson Richard N. Jr. officer: Chief Info Sec. Officer 65 EAST 55TH STREET, 17TH FLOOR NEW YORK NY 10022

Clear Secure Headlines

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