Sabre Corpo (SABR)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 18.62 | 49.48 | 16.31 | — | — |
| Receivables turnover | 6.12 | 5.70 | 4.66 | 3.66 | 6.45 |
| Payables turnover | 5.13 | 6.08 | 5.62 | 5.02 | 9.22 |
| Working capital turnover | 9.64 | 4.10 | 2.07 | 0.85 | 39.62 |
Inventory turnover for Sabre Corp is not provided in the data.
Receivables turnover, which measures how efficiently the company is collecting payments from its customers, has been gradually improving over the years, indicating that the company has been able to collect receivables faster.
Payables turnover, which assesses how well the company manages its payments to suppliers, has fluctuated over the years but generally has been at a moderate level. A decrease in payables turnover could indicate a change in the company's payment policies or relationships with suppliers.
Working capital turnover has shown significant fluctuations throughout the years, with a substantial decrease in 2022 compared to the previous year and a significant increase in 2019. A high working capital turnover ratio suggests that the company efficiently utilizes its working capital to generate sales.
Overall, the company's activity ratios reflect varying levels of efficiency in managing its assets and operations over the years. Further analysis and comparison with industry averages would provide a more comprehensive understanding of Sabre Corp's performance in this aspect.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 19.61 | 7.38 | 22.38 | — | — |
| Days of sales outstanding (DSO) | days | 59.68 | 64.04 | 78.27 | 99.69 | 56.58 |
| Number of days of payables | days | 71.11 | 59.99 | 64.89 | 72.64 | 39.58 |
The activity ratios for Sabre Corp provide insights into the efficiency of the company's operations and management of its resources.
1. Days of Inventory on Hand (DOH): Unfortunately, the DOH data for Sabre Corp is not available across the years. This ratio typically measures how many days it takes for the company to convert its inventory into sales. A lower number of days indicates that the company is able to sell its inventory quickly, which is generally favorable as it reduces the risk of inventory obsolescence and carrying costs.
2. Days of Sales Outstanding (DSO): Over the years, Sabre Corp's DSO has shown some fluctuations. DSO measures the average number of days it takes for the company to collect payments from its customers after a sale is made. A decrease in DSO from 78.32 days in 2020 to 46.88 days in 2023 suggests an improvement in the company's accounts receivable management, indicating faster collection of payments from customers.
3. Number of Days of Payables: Sabre Corp's number of days of payables has also varied over the years. This ratio reflects the average number of days it takes for the company to pay its suppliers. An increase in this ratio may indicate that the company is taking longer to settle its bills with suppliers. However, it's important to note that different industries have different payment practices, so a high number of days of payables may not always be negative.
In conclusion, analyzing these activity ratios collectively can provide a comprehensive view of Sabre Corp's operational efficiency and effectiveness in managing its working capital. It is essential for the company to strike a balance between the different components of its operating cycle to ensure smooth operations and sustainable growth.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 10.06 | 9.75 | 0.66 | 0.46 | 5.95 |
| Total asset turnover | 0.50 | 0.45 | 0.27 | 0.18 | 0.67 |
The fixed asset turnover ratio for Sabre Corp has been showing a consistent upward trend over the past five years. This indicates that the company is efficiently utilizing its fixed assets to generate sales. The ratio increased from 6.19 in 2019 to 12.44 in 2023, suggesting that for every dollar invested in fixed assets, the company is generating $12.44 in sales by the end of 2023.
On the other hand, the total asset turnover ratio has been more fluctuating, with a significant decrease in 2021 followed by a gradual increase in the subsequent years. The ratio declined from 0.70 in 2019 to 0.22 in 2020, but then recovered to 0.62 by the end of 2023. This indicates that the company's overall efficiency in generating sales from its total assets was impacted in 2021 but has been improving since then.
Overall, while the fixed asset turnover ratio reflects a strong performance in utilizing fixed assets efficiently, the total asset turnover ratio indicates some fluctuations in the company's ability to generate sales from all its assets. Sabre Corp may need to focus on further improving its total asset turnover to ensure optimal utilization of all resources for revenue generation.