Clear Secure Inc (YOU)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 6.02 | 4.48 | 3.56 | 2.93 | 2.82 |
Clear Secure Inc has consistently maintained a strong solvency position, as indicated by its low debt-to-assets, debt-to-capital, and debt-to-equity ratios, all of which stand at 0.00 over the five-year period from 2020 to 2024. This suggests that the company has very little or no debt relative to its assets, capital, and equity, indicating a low financial risk and a strong financial position.
However, the financial leverage ratio has been increasing over the years, starting at 2.82 in 2020 and rising to 6.02 in 2024. This suggests that the company's reliance on debt to finance its operations has been increasing significantly over the years, which may indicate a higher degree of financial risk and potential concerns about the company's ability to meet its debt obligations in the future.
Overall, while the debt-related ratios reflect a strong solvency position for Clear Secure Inc, the increasing financial leverage ratio warrants closer monitoring to ensure the company's financial stability and ability to manage its debt levels effectively in the long run.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | 0.69 | -17.84 | -329.32 | -1.96 |
Clear Secure Inc's interest coverage ratio has shown significant fluctuations over the years based on the provided data.
As of December 31, 2020, the interest coverage ratio was at an alarming -1.96, indicating that the company's operating income was insufficient to cover its interest expenses, suggesting a potential financial distress.
By December 31, 2021, the interest coverage ratio deteriorated even further to -329.32, which signifies a severe inability to meet interest obligations, posing serious financial risks.
The following year, as of December 31, 2022, Clear Secure Inc's interest coverage improved to -17.84. While still negative, the less drastic decline might suggest efforts to address the issue, yet the company remains highly leveraged.
Subsequently, by December 31, 2023, the interest coverage ratio turned positive at 0.69, indicating that Clear Secure Inc's operating income was finally sufficient to cover its interest expenses, albeit barely. This improvement suggests a positive trend in the company's financial health.
Unfortunately, data for December 31, 2024 is not available, making it challenging to assess the current state of Clear Secure Inc's interest coverage.
In conclusion, Clear Secure Inc has experienced a tumultuous period in terms of interest coverage, facing severe challenges in meeting its interest obligations in the past. The recent improvement to a positive interest coverage ratio in 2023 is a positive sign, but ongoing monitoring of the company's financial performance is necessary to ensure sustained stability.