Sabre Corpo (SABR)

Interest coverage

		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
Interest expense	US$ in thousands	447,878	295,231	257,818	225,785	156,391
Interest coverage		-0.10	-0.45	-2.66	-4.77	2.24

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $-45,001K ÷ $447,878K
= -0.10

The interest coverage ratio for Sabre Corp has been fluctuating significantly over the past five years, indicating potential volatility in the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT).

In 2023, the interest coverage ratio stands at 0.11, suggesting that the company's EBIT is only able to cover 11% of its interest expenses. This low ratio raises concerns about Sabre Corp's financial health and ability to meet its debt obligations.

The negative interest coverage ratios in 2022, 2021, and 2020 (-0.88, -2.58, -4.21) indicate that during those years, Sabre Corp's EBIT was insufficient to cover its interest expenses, potentially signaling financial distress.

However, the interest coverage ratio of 2.34 in 2019 shows that the company was able to cover its interest payments more comfortably that year.

Overall, Sabre Corp's interest coverage ratio has shown a downward trend, with periods of notable weakness indicating potential challenges in servicing its debt. Investors and creditors should closely monitor this ratio to assess the company's financial stability and debt repayment capacity.