Clear Secure Inc (YOU)

The interest coverage ratio measures a company's ability to meet its interest obligations with its earnings. A higher ratio indicates a stronger ability to cover interest expenses.

Looking at the data provided for Clear Secure Inc, the interest coverage ratio has fluctuated significantly over the years. In December 2020, the interest coverage ratio was reported as -1.96, indicating that the company's earnings were insufficient to cover its interest expenses, raising concerns about its ability to meet its debt obligations.

The situation worsened drastically by December 2021, with the interest coverage ratio plummeting to -329.32, reflecting a severe decline in the company's ability to cover its interest expenses. This could be a red flag to investors and creditors, suggesting a high level of financial risk.

In December 2022, there was a slight improvement in the interest coverage ratio to -17.84, but it still remains significantly negative, indicating ongoing challenges in meeting interest payments.

By December 2023, the interest coverage ratio improved to 0.69, entering positive territory. While this indicates that the company's earnings were just sufficient to cover its interest expenses, there is still a relatively narrow margin, suggesting continued monitoring of financial performance is necessary.

The data for December 31, 2024, is not available (indicated by the dash), making it difficult to assess the current financial health of Clear Secure Inc based on the interest coverage ratio alone. It is crucial for the company to maintain a healthy interest coverage ratio to demonstrate its ability to manage debt obligations effectively.

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Dec 31, 2024