Clear Secure Debt
| YOU Stock | USD 25.76 0.12 0.46% |
Clear Secure holds a debt-to-equity ratio of 0.039. At this time, Clear Secure's Net Debt is comparatively stable compared to the past year. Short Term Debt is likely to gain to about 7.6 M in 2024, whereas Short and Long Term Debt Total is likely to drop slightly above 103 M in 2024. . Clear Secure's financial risk is the risk to Clear Secure stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
Clear Secure's liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Clear Secure's cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the Company is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps Clear Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Clear Secure's stakeholders.
For most companies, including Clear Secure, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Clear Secure, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Clear Secure's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Price Book 19.0417 | Book Value 1.364 | Operating Margin 0.1768 | Profit Margin 0.1093 | Return On Assets 0.0666 |
Clear |
Clear Secure Bond Ratings
Clear Secure financial ratings play a critical role in determining how much Clear Secure have to pay to access credit markets, i.e., the amount of interest on their issued debt. The threshold between investment-grade and speculative-grade ratings has important market implications for Clear Secure's borrowing costs.| Piotroski F Score | 7 | Strong | View |
| Beneish M Score | (3.74) | Unlikely Manipulator | View |
Clear Secure Debt to Cash Allocation
Clear Secure has 127.38 M in debt with debt to equity (D/E) ratio of 0.04, which may show that the company is not taking advantage of profits from borrowing. Clear Secure has a current ratio of 2.03, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due. Note however, debt could still be an excellent tool for Clear to invest in growth at high rates of return.Clear Secure Total Assets Over Time
Clear Secure Assets Financed by Debt
Typically, companies with high debt-to-asset ratios are said to be highly leveraged. The higher the ratio, the greater risk will be associated with the Clear Secure's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Clear Secure, which in turn will lower the firm's financial flexibility.Clear Secure Corporate Bonds Issued
Clear Net Debt
Net Debt |
|
Understaning Clear Secure Use of Financial Leverage
Clear Secure's financial leverage ratio measures its total debt position, including all of its outstanding liabilities, and compares it to Clear Secure's current equity. If creditors own a majority of Clear Secure's assets, the company is considered highly leveraged. Understanding the composition and structure of Clear Secure's outstanding bonds gives an idea of how risky it is and if it is worth investing in.
| Last Reported | Projected for Next Year | ||
| Net Debt | 69.5 M | 73 M | |
| Short Term Debt | 5.7 M | 7.6 M | |
| Short and Long Term Debt Total | 127.4 M | 103 M | |
| Net Debt To EBITDA | 1.66 | 1.58 | |
| Interest Debt Per Share | 0.07 | 0.08 |
Thematic Opportunities
Explore Investment Opportunities
Additional Tools for Clear Stock Analysis
When running Clear Secure's price analysis, check to measure Clear Secure's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Clear Secure is operating at the current time. Most of Clear Secure's value examination focuses on studying past and present price action to predict the probability of Clear Secure's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Clear Secure's price. Additionally, you may evaluate how the addition of Clear Secure to your portfolios can decrease your overall portfolio volatility.
What is Financial Leverage?
Financial leverage is the use of borrowed money (debt) to finance the purchase of assets with the expectation that the income or capital gain from the new asset will exceed the cost of borrowing. In most cases, the debt provider will limit how much risk it is ready to take and indicate a limit on the extent of the leverage it will allow. In the case of asset-backed lending, the financial provider uses the assets as collateral until the borrower repays the loan. In the case of a cash flow loan, the general creditworthiness of the company is used to back the loan. The concept of leverage is common in the business world. It is mostly used to boost the returns on equity capital of a company, especially when the business is unable to increase its operating efficiency and returns on total investment. Because earnings on borrowing are higher than the interest payable on debt, the company's total earnings will increase, ultimately boosting stockholders' profits.Leverage and Capital Costs
The debt to equity ratio plays a role in the working average cost of capital (WACC). The overall interest on debt represents the break-even point that must be obtained to profitability in a given venture. Thus, WACC is essentially the average interest an organization owes on the capital it has borrowed for leverage. Let's say equity represents 60% of borrowed capital, and debt is 40%. This results in a financial leverage calculation of 40/60, or 0.6667. The organization owes 10% on all equity and 5% on all debt. That means that the weighted average cost of capital is (.4)(5) + (.6)(10) - or 8%. For every $10,000 borrowed, this organization will owe $800 in interest. Profit must be higher than 8% on the project to offset the cost of interest and justify this leverage.Benefits of Financial Leverage
Leverage provides the following benefits for companies:- Leverage is an essential tool a company's management can use to make the best financing and investment decisions.
- It provides a variety of financing sources by which the firm can achieve its target earnings.
- Leverage is also an essential technique in investing as it helps companies set a threshold for the expansion of business operations. For example, it can be used to recommend restrictions on business expansion once the projected return on additional investment is lower than the cost of debt.