Sabre Corpo (SABR)

Sabre Corp's liquidity ratios, including the current ratio, quick ratio, and cash ratio, provide insight into the company's ability to meet short-term financial obligations.

The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has exhibited a declining trend from 2019 to 2023. While a current ratio above 1 indicates the company can cover its current obligations, a decreasing trend may indicate potential liquidity challenges in the future.

Similarly, the quick ratio, also known as the acid-test ratio, reflects the company's ability to meet immediate obligations without relying on inventory. Like the current ratio, the quick ratio has followed a downward trajectory over the years, indicating a potential decrease in the company's ability to cover short-term liabilities with its most liquid assets.

The cash ratio, which is the most conservative measure of liquidity, focuses solely on cash and cash equivalents to cover current liabilities. Sabre Corp's cash ratio has fluctuated over the years, but overall, it has decreased from 2019 to 2023. A lower cash ratio suggests a reduced ability to cover short-term obligations using only cash resources.

In conclusion, Sabre Corp's liquidity ratios suggest a declining trend in its ability to cover short-term obligations with current assets and cash equivalents. This implies a potential liquidity risk that should be monitored closely, as a company's liquidity is crucial for its ongoing operations and financial stability.

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Additional liquidity measure

The cash conversion cycle for Sabre Corp has fluctuated over the past five years. The company's cash conversion cycle was -25.71 days at the end of 2023, indicating that, on average, the company is able to convert its investments in raw materials into cash collected from customers within less than a month. This represents a significant improvement compared to the previous year when the cash conversion cycle was -5.24 days, indicating a faster conversion of investments into cash.

In 2021, the cash conversion cycle further improved to -1.56 days, suggesting an even quicker conversion process, possibly due to efficient management of inventory and receivables. However, in 2020, there was a reversal in performance as the cash conversion cycle increased to 5.68 days, indicating a longer time taken to convert investments into cash compared to the previous year.

The most significant change occurred in 2019 when the cash conversion cycle was at its peak at 31.29 days, signifying a considerable delay in converting investments into cash. Overall, Sabre Corp's cash conversion cycle has shown fluctuations in recent years, with an improved performance in 2023, demonstrating efficient working capital management.