Clear Secure Inc (YOU)

Financial leverage ratio

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021
Total assets	US$ in thousands	858,577	982,382	1,017,040	1,045,010	1,061,960	1,085,900	1,093,590	1,037,520	894,791	893,876	854,055	812,750	773,226	303,795
Total stockholders’ equity	US$ in thousands	128,970	153,536	165,866	233,329	275,904	266,931	296,774	291,065	291,668	290,190	279,638	277,613	286,284	62,641
Financial leverage ratio		6.66	6.40	6.13	4.48	3.85	4.07	3.68	3.56	3.07	3.08	3.05	2.93	2.70	4.85

September 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $858,577K ÷ $128,970K
= 6.66

The financial leverage ratio of Clear Secure Inc has been increasing steadily over the past few quarters, indicating a higher level of financial risk and reliance on debt to finance its operations. The ratio stood at 6.66 as of September 30, 2024, compared to 6.40 in June 30, 2024, and 6.13 in March 31, 2024. This upward trend in the financial leverage ratio suggests that the company's debt levels relative to equity are increasing.

The significant jump in the financial leverage ratio from 4.48 in December 31, 2023, to 6.66 in September 30, 2024, reflects a substantial shift towards more debt financing within a relatively short timeframe. This could expose Clear Secure Inc to higher interest expenses and repayment obligations, which may impact its financial flexibility and profitability in the long run.

Comparing the recent financial leverage ratio of 6.66 to historical values, we observe a notable increase from the ratio of around 3 in the earlier quarters of 2022 and 2021. This escalation in financial leverage could imply that Clear Secure Inc is taking on more debt to support its growth initiatives, acquisitions, or other strategic investments.

It is essential for stakeholders, including investors and creditors, to closely monitor Clear Secure Inc's financial leverage ratio and assess the company's ability to manage its debt obligations and maintain a healthy balance between debt and equity. A high financial leverage ratio may indicate a higher risk of default or financial distress, highlighting the importance of conducting a thorough analysis of the company's financial health and debt management practices.