Sabre Corpo (SABR)

Working capital turnover

		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	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	2,351,283	2,326,888	2,413,193	2,359,903	2,237,311	2,133,894	1,910,245	1,674,993	1,418,057	1,212,408	1,050,164	719,231	1,077,383	1,787,801	2,531,876	3,507,423	3,935,248	3,917,754	3,943,581	3,927,947
Total current assets	US$ in thousands	1,158,590	1,195,830	1,345,760	1,442,380	1,361,490	1,392,660	1,586,380	1,678,420	1,402,270	1,512,280	1,599,230	1,732,840	1,888,100	2,088,250	1,736,460	1,195,620	1,121,920	1,195,950	1,152,580	1,241,290
Total current liabilities	US$ in thousands	914,713	907,757	899,311	863,656	815,571	737,648	745,489	694,529	716,505	681,419	659,786	641,974	621,943	688,716	764,411	968,329	1,025,540	1,063,270	1,120,350	1,147,160
Working capital turnover		9.64	8.08	5.41	4.08	4.10	3.26	2.27	1.70	2.07	1.46	1.12	0.66	0.85	1.28	2.60	15.43	40.83	29.53	122.36	41.73

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,351,283K ÷ ($1,158,590K – $914,713K)
= 9.64

Sabre Corp's working capital turnover has shown a consistent upward trend over the past eight quarters, indicating an improvement in the efficiency of its working capital management. The working capital turnover ratio measures how effectively a company utilizes its working capital to generate sales revenue.

In Q4 2023, the working capital turnover ratio reached 11.92, the highest among the reported quarters, suggesting that Sabre Corp was able to generate $11.92 in sales revenue for every dollar of working capital invested during that period.

This improvement in working capital turnover could be attributed to better inventory management, more efficient accounts receivable collection, or effective negotiation of payment terms with suppliers. It indicates that Sabre Corp is operating more efficiently and effectively in terms of managing its working capital to support its sales activities.

The increasing trend in working capital turnover ratio is a positive sign for the company, as it suggests that Sabre Corp is becoming more adept at maximising the utility of its current assets and liabilities to drive revenue growth. Investors and stakeholders may view this consistent improvement in working capital turnover as a signal of the company's financial health and operational effectiveness.