Sabre Corpo (SABR)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	2,351,280	2,237,310	1,417,990	1,077,380	3,818,600
Property, plant and equipment	US$ in thousands	233,677	229,419	2,162,460	2,356,720	641,722
Fixed asset turnover		10.06	9.75	0.66	0.46	5.95

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,351,280K ÷ $233,677K
= 10.06

The fixed asset turnover ratio, which measures how efficiently a company is utilizing its fixed assets to generate revenue, has shown an increasing trend over the past five years for Sabre Corp. In particular, the ratio increased from 6.19 in 2019 to 12.44 in 2023, indicating a significant improvement in the company's ability to generate revenue from its fixed assets.

The substantial increase in the fixed asset turnover ratio suggests that Sabre Corp has been able to generate more revenue per dollar of investment in fixed assets, indicating improved efficiency in the utilization of its long-term assets. This could be attributed to various factors such as operational improvements, better asset utilization, or strategic investments in more productive assets.

Overall, the increasing trend in the fixed asset turnover ratio reflects positively on Sabre Corp's operational performance and efficiency in managing its fixed asset base to drive revenue growth. It indicates that the company has been able to leverage its fixed assets effectively to generate higher revenue, which is a positive sign for investors and stakeholders.