Sabre Corpo (SABR)

Sabre Corpo's liquidity ratios have demonstrated a declining trend over the years. The current ratio, which indicates the company's ability to meet its short-term obligations using its current assets, decreased from 3.04 in 2020 to 1.02 in 2024. This suggests a gradual weakening of the company's liquidity position.

Similarly, the quick ratio, often considered a more stringent measure of liquidity as it excludes inventory from current assets, also showed a decrease from 2.45 in 2020 to 0.64 in 2024. This declining trend indicates a potential struggle for Sabre Corpo to meet its immediate short-term liabilities without relying on inventory.

Furthermore, the cash ratio, which specifically measures a company's ability to cover its current liabilities with cash and cash equivalents, also showed a decrease from 2.45 in 2020 to 0.64 in 2024. This indicates a decreasing ability for the company to settle its current obligations using its cash reserves alone.

Overall, the declining trend in Sabre Corpo's liquidity ratios signals a potential risk in the company's ability to meet its short-term financial commitments with its available liquid assets. It may be crucial for the company to closely monitor and manage its liquidity position to ensure its financial health and stability in the future.

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Additional liquidity measure

The cash conversion cycle of Sabre Corpo has shown fluctuations over the years. In 2020 and 2024, the cash conversion cycle was 0.00 days, indicating that the company was able to convert its investments in inventory and receivables into cash very quickly. In 2021, the cycle increased to 8.87 days, suggesting a slight delay in converting investments into cash. However, in 2022, there was an improvement as the cycle decreased to 3.59 days, indicating a more efficient cash conversion process.

The most significant change occurred in 2023, where the cash conversion cycle increased sharply to 19.61 days, signifying a prolonged period for the company to convert its investments into cash. This may raise concerns about the company's working capital management efficiency and its ability to generate cash flow from operational activities in a timely manner.

Overall, Sabre Corpo should focus on managing its inventory levels, improving accounts receivable collection, and optimizing accounts payable payment to shorten the cash conversion cycle and enhance its liquidity position.