Sabre Corpo (SABR)

Cash conversion cycle

		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
Cash conversion cycle	days	8.17	11.43	35.75	27.05	17.00

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 19.61 + 59.68 – 71.11
= 8.17

The cash conversion cycle of Sabre Corp has exhibited a significant improvement over the five-year period from 2019 to 2023. In 2019, the company had a relatively long cash conversion cycle of 31.29 days, indicating that it took over a month, on average, to convert its investments in inventory and receivables into cash. However, by 2023, the situation has reversed, with Sabre Corp achieving a negative cash conversion cycle of -25.71 days.

This negative cash conversion cycle suggests that the company is able to convert its investments in inventory and receivables into cash at a faster pace than it takes to pay its suppliers, resulting in a favorable cash position. This improvement can be attributed to effective management of inventory, receivables, and payables, leading to a more efficient cash flow cycle for Sabre Corp.

Overall, the trend indicates that Sabre Corp has become more efficient in managing its working capital over the years, which is a positive sign of effective financial management and operational performance.