Sabre Corpo (SABR)

Interest coverage

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	-45,630	-148,744	-133,539	-236,764	-131,746	-205,301	-316,449	-384,815	-685,263	-773,327	-859,865	-1,067,654	-1,077,312	-803,776	-429,494	41,365	350,309	418,377	444,343	496,482
Interest expense (ttm)	US$ in thousands	447,878	415,459	373,207	333,957	295,231	269,046	257,387	254,775	257,818	261,870	260,785	252,444	225,785	196,776	172,143	155,820	156,391	157,572	157,120	156,921
Interest coverage		-0.10	-0.36	-0.36	-0.71	-0.45	-0.76	-1.23	-1.51	-2.66	-2.95	-3.30	-4.23	-4.77	-4.08	-2.49	0.27	2.24	2.66	2.83	3.16

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-45,630K ÷ $447,878K
= -0.10

Sabre Corp's interest coverage ratio has shown a concerning downward trend over the past eight quarters, with the ratio falling from -0.88 in Q4 2022 to 0.11 in Q4 2023. The consistently negative interest coverage ratios in Q1 to Q3 of 2023 indicate that the company's operating income was insufficient to cover its interest expenses during those periods. This raises red flags about Sabre Corp's financial health and suggests that the company may be facing challenges in meeting its interest obligations with its current level of earnings. The decreasing trend in the interest coverage ratio over time indicates a deteriorating ability of the company to meet its interest payments, which could potentially lead to liquidity issues and financial distress if not addressed promptly.