Clear Secure Inc (YOU)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Cash and cash equivalents	US$ in thousands	57,900	38,939	280,107
Short-term investments	US$ in thousands	665,197	665,810	335,228
Total current liabilities	US$ in thousands	552,049	397,473	264,591
Cash ratio		1.31	1.77	2.33

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($57,900K + $665,197K) ÷ $552,049K
= 1.31

The cash ratio of Clear Secure Inc has shown a decreasing trend over the past three years, declining from 2.33 in 2021 to 1.77 in 2022, and further to 1.31 in 2023. This indicates a reduction in the company's ability to cover its short-term liabilities solely with cash and cash equivalents. While a high cash ratio is typically favorable as it suggests a strong liquidity position, a decreasing trend may raise concerns about the company's liquidity management or potential inefficiencies in utilizing available cash resources. It is important for Clear Secure Inc to closely monitor its cash position and evaluate its cash management strategies to ensure sufficient liquidity to meet its short-term obligations.