Clear Secure Inc (YOU)

Interest coverage

Dec 31, 2024 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 Mar 31, 2021 Dec 31, 2020
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 123,191 104,813 97,343 75,251 33,911 -17,306 -111,018 -134,919 -135,760 -131,428 -97,940 -120,030 -114,589 -83,449 -39,683 20,340 -18,452
Interest expense (ttm) US$ in thousands 0 7,550 15,227 22,621 29,013 26,219 20,178 12,971 6,586 1,846 330 285 349 378 270 128 57
Interest coverage — 13.88 6.39 3.33 1.17 -0.66 -5.50 -10.40 -20.61 -71.20 -296.79 -421.16 -328.34 -220.76 -146.97 158.91 -323.72

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $123,191K ÷ $0K
= —

Clear Secure Inc's interest coverage ratio has been fluctuating significantly over the past few years. Initially, the company had negative interest coverage ratios, indicating that it was not generating enough operating income to cover its interest expenses. This raised concerns about the company's ability to meet its debt obligations.

However, starting from the end of the first quarter of 2023, Clear Secure Inc's interest coverage ratio started to improve gradually. The ratio turned positive, indicating that the company's operating income was sufficient to cover its interest expenses. This positive trend continued, with the interest coverage ratio increasing steadily over the subsequent reporting periods.

By the end of the fourth quarter of 2024, Clear Secure Inc's interest coverage ratio had reached a healthy level, suggesting that the company had successfully managed to increase its operating income relative to its interest expenses. This improvement signals a positive development for the company's financial health and its ability to service its debt obligations.