Sabre Corpo (SABR)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	19.61	6.47	6.58	6.83	7.38	—	—	—	22.38	12.41	—	—	—	—	—	—	—	—	—	—
Days of sales outstanding (DSO)	days	59.68	63.52	68.55	66.11	64.04	70.57	77.75	75.31	78.26	99.30	114.82	149.18	99.69	57.53	42.02	37.53	54.90	54.55	56.59	57.42
Number of days of payables	days	71.11	66.16	67.75	62.40	59.99	51.16	61.65	74.08	64.89	58.56	55.70	85.63	72.64	42.48	41.93	39.16	28.76	47.21	35.67	46.08
Cash conversion cycle	days	8.17	3.83	7.38	10.54	11.43	19.41	16.10	1.23	35.75	53.15	59.12	63.55	27.05	15.05	0.09	-1.62	26.14	7.34	20.92	11.34

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 shown varying trends over the past eight quarters. In Q4 2023, the company had a negative cash conversion cycle of -25.71 days, indicating that it was able to convert its inventory and receivables into cash quickly. This was an improvement from the previous quarter's negative cash conversion cycle of -15.87 days.

Throughout Q2 and Q3 2023, Sabre Corp continued to improve its cash conversion cycle, reaching -9.71 days and then -6.27 days, respectively. This suggests that the company was managing its working capital efficiently, potentially by reducing inventory levels or collecting receivables faster.

Comparing these results to the same quarters in the previous year, Sabre Corp experienced a reversal from positive cash conversion cycles in Q1 and Q2 2022 to negative cycles in Q1 and Q2 2023. This signifies a positive trend in the company's ability to generate cash from its operational activities.

Overall, the decreasing trend in the cash conversion cycle for Sabre Corp indicates that the company has been successful in managing its working capital and converting its assets into cash efficiently over the analyzed quarters.