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Clear Secure Altman Z-Score

: 4.40 (As of Today)
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Good Sign:

Altman Z-score of 4.54 is strong.

Clear Secure has a Altman Z-Score of 4.40, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Clear Secure's Altman Z-Score or its related term are showing as below:

YOU' s Altman Z-Score Range Over the Past 10 Years
Min: 4.33   Med: 7.45   Max: 9.3
Current: 4.54

During the past 3 years, Clear Secure's highest Altman Z-Score was 9.30. The lowest was 4.33. And the median was 7.45.


Clear Secure Altman Z-Score Historical Data

The historical data trend for Clear Secure's Altman Z-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Clear Secure Annual Data
Trend Dec19 Dec20 Dec21
Altman Z-Score
- - 5.69

Clear Secure Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Altman Z-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.30 9.20 5.69 4.33 -

Competitive Comparison

For the Software - Application subindustry, Clear Secure's Altman Z-Score, along with its competitors' market caps and Altman Z-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Clear Secure Altman Z-Score Distribution

For the Software industry and Technology sector, Clear Secure's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Clear Secure's Altman Z-Score falls into.



Clear Secure Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

Clear Secure's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.4146+1.4*-0.06+3.3*-0.106+0.6*6.5886+1.0*0.382
=4.40

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Jun. 2022:
Total Assets was $893.9 Mil.
Total Current Assets was $702.6 Mil.
Total Current Liabilities was $332.0 Mil.
Retained Earnings was $-53.6 Mil.
Pre-Tax Income was -12.47 + -18.492 + -31.201 + -32.727 = $-94.9 Mil.
Interest Expense was 0 + 0 + -0.016 + -0.12 = $-0.1 Mil.
Revenue was 102.723 + 90.539 + 80.659 + 67.558 = $341.5 Mil.
Market Cap (Today) was $2,387.1 Mil.
Total Liabilities was $362.3 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(702.585 - 331.98)/893.876
=0.4146

X2=Retained Earnings/Total Assets
=-53.638/893.876
=-0.06

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-94.89 - -0.136)/893.876
=-0.106

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=2387.086/362.308
=6.5886

X5=Revenue/Total Assets
=341.479/893.876
=0.382

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Clear Secure has a Altman Z-Score of 4.40 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Clear Secure  (NYSE:YOU) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Clear Secure Altman Z-Score Related Terms

Thank you for viewing the detailed overview of Clear Secure's Altman Z-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Clear Secure Business Description

Clear Secure logo
Traded in Other Exchanges
N/A
Address
65 East 55th Street, 17th Floor, New York, NY, USA, 10022
Clear Secure Inc is involved in the creation of a frictionless travel experience while enhancing security. Its secure identity platform uses biometrics to automate the identity verification process through lanes in airports which helps to make the travel experience safe and easy.
Executives
Liu Dennis W. officer: Chief Accounting Officer 65 EAST 55TH STREET, 17TH FLOOR NEW YORK NY 10022
General Atlantic (alc), L.p. 10 percent owner C/O GENERAL ATLANTIC SERVICE CO., L.P. 55 EAST 52ND STREET, 33RD FLOOR NEW YORK NY 10055
General Atlantic (lux) S.a R.l. 10 percent owner 412F ROUTE D'ESCH LUXEMBOURG P7 10055
General Atlantic Partners (lux), Scsp 10 percent owner 55 EAST 52ND STREET FLOOR 33 NEW YORK NY 10055
General Atlantic Genpar (lux) Scsp 10 percent owner 412F ROUTE D'ESCH LUXEMBOURG N4 2086
General Atlantic Partners (bermuda) Eu, L.p. 10 percent owner C/O GENERAL ATLANTIC SERVICE COMPANY LP 55 EAST 52ND STREET, 33RD FLOOR NEW YORK NY 10055
Gap (bermuda) L.p. 10 percent owner C/O GENERAL ATLANTIC SERVICE COMPANY 55 EAST 52ND ST. 32ND FLOOR NEW YORK NY 10055
General Atlantic Genpar (bermuda), L.p. 10 percent owner C/O GENERAL ATLANTIC SERVICE COMPANY,LLC 55 EAST 52ND ST. 32ND FLOOR NEW YORK NY 10055
General Atlantic Partners 100, L.p. 10 percent owner C/O GENERAL ATLANTIC SERVICE COMPANY,LP 55 EAST 52ND STREET, 33RD FLOOR NEW YORK NY 10055
Perrin Walter Catesby Iii officer: EVP, Growth 65 EAST 55TH STREET, 17TH FLOOR NEW YORK NY 10022
Comella Maria A. officer: Head of Public Affairs 65 EAST 55TH STREET, 17TH FLOOR NEW YORK NY 10022
Cornick Kenneth L. director, 10 percent owner, officer: President & CFO 65 EAST 55TH STREET, 17TH FLOOR NEW YORK NY 10022
Jouhal Chiranjiv S. officer: Chief Technology Officer 65 EAST 55TH STREET, 17TH FLOOR NEW YORK NY 10022
Levine Matthew officer: GC & Chief Privacy Officer 65 EAST 55TH STREET, 17TH FLOOR NEW YORK NY 10022
Patterson Richard N. Jr. officer: Chief Info Sec. Officer 65 EAST 55TH STREET, 17TH FLOOR NEW YORK NY 10022

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