Sabre Corpo (SABR)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 1.03 | 0.95 | 0.89 | 0.78 | 0.57 |
| Debt-to-capital ratio | 1.40 | 1.23 | 1.12 | 0.93 | 0.78 |
| Debt-to-equity ratio | — | — | — | 13.27 | 3.47 |
| Financial leverage ratio | — | — | — | 17.09 | 6.06 |
Sabre Corp's solvency ratios indicate the company's ability to meet its financial obligations in the long term.
1. Debt-to-assets ratio: This ratio measures the proportion of the company's assets financed by debt. Over the past five years, Sabre Corp's debt-to-assets ratio has increased steadily, reaching 1.03 in 2023. This indicates that more than 100% of the company's assets are financed by debt, which may signify a higher financial risk.
2. Debt-to-capital ratio: The debt-to-capital ratio reflects the proportion of the company's capital structure that is funded by debt. Sabre Corp's debt-to-capital ratio has also shown an increasing trend, reaching 1.40 in 2023. This suggests that a significant portion of the company's capital is derived from debt, which may raise concerns about financial stability.
3. Debt-to-equity ratio: The debt-to-equity ratio provides insight into the company's leverage by comparing its total debt to shareholders' equity. Unfortunately, this data is missing for the earlier years, but in 2020 and 2019, the ratios were 13.12 and 3.56 respectively, indicating a high level of debt relative to equity.
4. Financial leverage ratio: This ratio measures the extent to which the company relies on debt to finance its operations. Sabre Corp's financial leverage ratio was not reported until 2019, where it stood at 6.06 and escalated to 17.09 in 2020. This suggests a significant increase in reliance on debt financing over the years.
Overall, based on the solvency ratios analyzed, it appears that Sabre Corp has been increasingly relying on debt to finance its operations and investments. Investors and stakeholders may want to closely monitor the company's debt levels and financial health to assess the potential risks associated with its solvency position.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | -0.10 | -0.45 | -2.66 | -4.77 | 2.24 |
The interest coverage ratio for Sabre Corp has been fluctuating significantly over the past five years. In 2023, the interest coverage ratio was 0.11, indicating that the company's operating income was only sufficient to cover 11% of its interest expenses. This implies a precarious financial position with limited ability to meet its interest obligations.
The negative interest coverage ratios in 2022, 2021, and 2020 (-0.88, -2.58, -4.21, respectively) are concerning as they suggest that Sabre Corp's operating income was not enough to cover its interest expenses during those years. This indicates a high risk of default on debt obligations and financial distress.
The positive interest coverage ratio of 2.34 in 2019 shows that Sabre Corp had sufficient operating income to cover 234% of its interest expenses that year. However, the subsequent decline in the interest coverage ratio raises questions about the company's ability to generate sustainable earnings to meet its debt obligations in the long term.
Overall, the trend in Sabre Corp's interest coverage ratio indicates a deteriorating financial position, with a significant decline in the company's ability to service its debt through operating income. Investors and creditors should closely monitor Sabre Corp's financial performance and leverage levels to assess the risk of default and financial instability.