Clear Secure Inc (YOU)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 104,813 | 89,005 | 58,885 | 20,138 | -27,573 | -112,552 | -125,891 | -129,064 | -128,593 | -95,489 | -120,113 |
| Interest expense (ttm) | US$ in thousands | 256 | 311 | 316 | 339 | 94 | 207 | 352 | 440 | 398 | 317 | 260 |
| Interest coverage | 409.43 | 286.19 | 186.34 | 59.40 | -293.33 | -543.73 | -357.64 | -293.33 | -323.10 | -301.23 | -461.97 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $104,813K ÷ $256K
= 409.43
The interest coverage ratio of Clear Secure Inc has shown significant fluctuations over the past several quarters. This ratio measures the company's ability to cover its interest expenses with its operating income.
In the most recent quarter, ending September 30, 2024, the interest coverage ratio stands at 409.43. This indicates that Clear Secure Inc generated operating income that was over 400 times its interest expense for that period, showcasing a very strong ability to meet its interest obligations.
Looking at the trend over the past few quarters, there has been a notable improvement in the interest coverage ratio since the beginning of the year 2024. The ratio has consistently increased from 59.40 in December 2023 to 409.43 in September 2024, reflecting a positive trajectory in the company's ability to comfortably cover its interest payments.
However, it is important to note that the interest coverage ratio was negative in the third quarter of 2023 (-293.33) and the second quarter of 2023 (-543.73), indicating that the company's operating income was not sufficient to cover its interest expenses in those periods. This suggests a period of financial stress where Clear Secure Inc may have struggled to meet its interest obligations using its operating income alone.
Overall, the latest interest coverage ratio of 409.43 demonstrates a strong financial position for Clear Secure Inc in terms of its ability to meet interest payments with its operating income. Continued monitoring of this ratio will be crucial to assess the company's financial health and stability in the future.
Peer comparison
Sep 30, 2024