Sabre Corpo (SABR)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	724,479	648,207	794,888	978,352	1,499,660
Short-term investments	US$ in thousands	555	51,970	54,303	0	24,265
Receivables	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	1,141,780	914,713	815,571	716,505	621,943
Quick ratio		0.64	0.77	1.04	1.37	2.45

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($724,479K + $555K + $—K) ÷ $1,141,780K
= 0.64

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 or higher is generally considered satisfactory as it indicates that the company has enough liquid assets to cover its short-term liabilities.

For Sabre Corpo, the quick ratio has shown a declining trend over the years:
- As of December 31, 2020, the quick ratio was 2.45, indicating a strong ability to cover short-term liabilities with liquid assets.
- By December 31, 2021, the quick ratio decreased to 1.37, still above the 1 threshold but showing a significant decrease from the previous year.
- The quick ratio further decreased to 1.04 by December 31, 2022, approaching the 1 threshold closely.
- As of December 31, 2023, the quick ratio dropped to 0.77, indicating a potential liquidity concern as the ratio falls below 1.
- Finally, by December 31, 2024, the quick ratio decreased to 0.64, further highlighting the company's decreased ability to cover its short-term obligations with its liquid assets.

The decreasing trend in Sabre Corpo's quick ratio over the years suggests a potential deterioration in the company's liquidity position and its ability to meet short-term obligations. It is important for investors and stakeholders to monitor this ratio closely to assess the company's financial health and liquidity risk.