Sabre Corpo (SABR)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	-45,001	-131,551	-685,263	-1,077,570	350,309
Long-term debt	US$ in thousands	4,829,460	4,717,090	4,723,680	4,717,810	3,261,820
Total stockholders’ equity	US$ in thousands	-1,388,480	-884,327	-508,907	355,604	939,081
Return on total capital		-1.31%	-3.43%	-16.26%	-21.24%	8.34%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-45,001K ÷ ($4,829,460K + $-1,388,480K)
= -1.31%

The return on total capital for Sabre Corp has exhibited significant fluctuations over the past five years. In 2023, the return on total capital was positive at 1.43%, indicating that the company generated a modest return on its total invested capital. This may suggest improved efficiency in utilizing both debt and equity to generate profits.

In contrast, the return on total capital was negative in the preceding years, especially notable in 2020 and 2021 at -19.73% and -15.69% respectively. These negative figures imply that the company's operations were not generating sufficient returns to cover the total capital employed, indicating potential inefficiencies or financial challenges during those periods.

The return on total capital rebounded positively in 2019 at 8.53%, indicating a strong performance that year in generating returns relative to the total capital invested. However, the subsequent negative trends in the following years suggest a need for further analysis to understand the factors contributing to the fluctuating performance.

Overall, a positive trend in the return on total capital is favorable, as it indicates the company's ability to generate profits from its total capital base. However, the negative figures in recent years highlight the importance of closely monitoring and addressing factors impacting the efficiency and profitability of Sabre Corp's operations.