Clear Secure Inc (YOU)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 66,892 | 57,900 | 38,939 | 280,107 | 116,226 |
| Short-term investments | US$ in thousands | 542,605 | 665,197 | 665,810 | 335,228 | 37,813 |
| Total current liabilities | US$ in thousands | 643,054 | 552,049 | 397,473 | 264,591 | 146,104 |
| Cash ratio | 0.95 | 1.31 | 1.77 | 2.33 | 1.05 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($66,892K
+ $542,605K)
÷ $643,054K
= 0.95
The cash ratio of Clear Secure Inc has fluctuated over the years based on the provided data. As of December 31, 2020, the cash ratio stood at 1.05, indicating that the company had $1.05 in cash and cash equivalents for every $1 of its current liabilities.
By December 31, 2021, the cash ratio had significantly improved to 2.33, showcasing a stronger liquidity position compared to the previous year. This means the company had $2.33 in cash and cash equivalents for every $1 of its current liabilities, indicating a healthier ability to cover its short-term obligations with liquid assets.
In the following years, the cash ratio slightly decreased to 1.77 as of December 31, 2022, and further dropped to 1.31 by December 31, 2023. These reductions suggest that the company may have utilized its cash reserves for investments, operations, or other purposes, potentially reducing its liquidity cushion for meeting short-term obligations compared to the previous year.
By December 31, 2024, the cash ratio declined to 0.95, indicating that Clear Secure Inc had $0.95 in cash and cash equivalents for every $1 of its current liabilities. A cash ratio below 1 may raise concerns about the company's ability to cover its short-term obligations solely with cash assets.
In conclusion, the fluctuating trend of Clear Secure Inc's cash ratio reflects the changes in its liquidity position over the years, with variations in the company's ability to meet short-term liabilities from its available cash and cash equivalents.
Peer comparison
Dec 31, 2024