Sabre Corpo (SABR)

Interest coverage

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	279,718	288,952	137,485	60,293	-39,978	-142,766	-128,850	-232,509	-127,120	-203,348	-316,468	-388,408	-691,375	-789,730	-879,720	-1,088,216	-1,094,052	-808,966	-429,209	45,799
Interest expense (ttm)	US$ in thousands	509,643	504,298	496,001	472,841	447,878	415,459	373,207	333,957	295,231	269,046	257,387	254,775	257,818	265,251	267,441	261,750	235,091	202,701	174,793	155,820
Interest coverage		0.55	0.57	0.28	0.13	-0.09	-0.34	-0.35	-0.70	-0.43	-0.76	-1.23	-1.52	-2.68	-2.98	-3.29	-4.16	-4.65	-3.99	-2.46	0.29

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $279,718K ÷ $509,643K
= 0.55

Sabre Corpo's interest coverage ratio has shown a declining trend over the past few years based on the provided data. The interest coverage ratio is a measure of a company's ability to pay interest on its outstanding debt. A ratio below 1 indicates that the company is not generating enough operating income to cover its interest expenses.

For Sabre Corpo, the interest coverage ratio was significantly below 1 for most of the reported periods, indicating a concerning level of financial risk. The company struggled to cover its interest payments with its operating income during these periods.

It is worth noting that the interest coverage ratio improved slightly in the most recent quarters, moving from negative values to positive ones. This improvement suggests that Sabre Corpo may have enhanced its ability to meet its interest obligations, but the ratio is still low compared to industry benchmarks.

Overall, Sabre Corpo's interest coverage ratio indicates a historical weakness in its ability to service its debt with operating income, although there are signs of a slight improvement in recent periods. Investors and creditors should continue to monitor this ratio closely to assess the company's financial health and debt repayment capacity.