Sabre Corpo (SABR)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 1.03 | 1.02 | 0.97 | 0.96 | 0.95 | 0.94 | 0.91 | 0.89 | 0.89 | 0.87 | 0.84 | 0.81 | 0.78 | 0.72 | 0.75 | 0.63 | 0.57 | 0.57 | 0.57 | 0.57 |
| Debt-to-capital ratio | 1.40 | 1.37 | 1.30 | 1.25 | 1.23 | 1.19 | 1.15 | 1.10 | 1.12 | 1.08 | 1.04 | 0.99 | 0.93 | 0.88 | 0.94 | 0.84 | 0.78 | 0.78 | 0.78 | 0.78 |
| Debt-to-equity ratio | — | — | — | — | — | — | — | — | — | — | — | 194.62 | 13.27 | 7.34 | 14.55 | 5.38 | 3.47 | 3.46 | 3.62 | 3.47 |
| Financial leverage ratio | — | — | — | — | — | — | — | — | — | — | — | 240.55 | 17.09 | 10.15 | 19.35 | 8.48 | 6.06 | 6.03 | 6.32 | 6.12 |
The solvency ratios of Sabre Corp indicate the extent of the company's financial leverage and ability to meet its long-term obligations. The Debt-to-assets ratio has been gradually increasing over the past year, reaching 1.03 in Q4 2023, reflecting a higher proportion of debt relative to assets. This trend suggests a potential risk of financial distress if the company is unable to generate sufficient cash flows to cover its debt obligations.
Similarly, the Debt-to-capital ratio has also been steadily rising, hitting 1.40 in Q4 2023, indicating that a significant portion of the company's capital structure comprises debt. This high level of leverage could hinder the company's flexibility in pursuing growth opportunities or weathering economic downturns.
As the Debt-to-equity ratio and Financial leverage ratio data is not available, a comprehensive assessment of the company's solvency position based on these specific ratios is not possible. However, the increasing trend in both the Debt-to-assets and Debt-to-capital ratios highlights the importance of monitoring Sabre Corp's debt levels and financial health to ensure sustainable operations in the long run.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Sabre Corp's interest coverage ratio has been deteriorating over the past eight quarters, indicating the company's inability to cover its interest expenses with its operating profits. The interest coverage ratio is calculated by dividing earnings before interest and taxes (EBIT) by the interest expense, and a ratio below 1 indicates that the company is not generating enough earnings to cover its interest obligations.
In Q4 2023, the interest coverage ratio improved to 0.11 from negative ratios in the previous three quarters. However, despite the improvement, the ratio is still below 1, suggesting that the company's earnings are insufficient to cover its interest payments.
The negative interest coverage ratios in Q1-Q3 2023 and the preceding quarters indicate a concerning trend of declining profitability and increasing financial risk for Sabre Corp. Investors and creditors should closely monitor the company's ability to generate sufficient earnings to meet its interest obligations in the future.