Sabre Corpo (SABR)

Sabre Corpo's current ratio, a measure of short-term liquidity, has shown fluctuations over the years. It started at a relatively low level of 1.23 on March 31, 2020, peaked at 3.04 on December 31, 2020, and has since declined to 1.02 on December 31, 2024. This downward trend indicates a potential deterioration in the company's ability to cover its short-term liabilities with its current assets.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, follows a similar pattern as the current ratio. It ranged from 0.59 to 2.45 during the period under review, with a significant decrease towards the end of the period.

The cash ratio, which is the most conservative liquidity ratio as it only considers cash and cash equivalents, mirrors the trends seen in both the current and quick ratios. It ranged from 0.57 to 2.45, showing a declining trend over time.

Overall, Sabre Corpo's liquidity position seems to have weakened over the years, as indicated by the decreasing values of the current, quick, and cash ratios. This suggests a potential risk in meeting its short-term obligations with available liquid assets. Management should closely monitor these ratios and take steps to improve liquidity if necessary.

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Additional liquidity measure

Sabre Corpo's cash conversion cycle measures how long it takes the company to convert its investments in inventory and other resources into cash flows from sales. The cash conversion cycle for Sabre Corpo fluctuated over the period from September 30, 2021, to December 31, 2024.

The cash conversion cycle for Sabre Corpo was consistently at 0.00 days from March 31, 2020, to March 31, 2022, indicating efficient management of inventory and receivables during this period. The cycle increased slightly to 4.59 days on September 30, 2021, and further to 8.87 days on December 31, 2021. This increase may suggest potential delays in collecting receivables or managing inventory.

However, the company improved its cash conversion cycle, reducing it to 3.59 days on December 31, 2022, and maintained this efficiency throughout the first half of 2023. The cycle then increased to 10.48 days on December 31, 2023, which may indicate challenges in managing working capital effectively.

Sabre Corpo managed to bring down the cash conversion cycle to 3.46 days on March 31, 2024, and further to 3.39 days on June 30, 2024, suggesting improved efficiency in managing inventory and receivables. The cycle remained at 0.00 days in the following quarters, indicating efficient utilization of resources to generate cash flows.

In conclusion, Sabre Corpo's cash conversion cycle exhibited fluctuations over the analyzed period, with periods of efficiency and challenges in managing working capital effectively. It is important for the company to continue monitoring and optimizing its cash conversion cycle to enhance liquidity and profitability.