IAC Inc. (IAC)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,365,240 | 5,235,280 | 3,699,630 | 2,764,540 |
| Property, plant and equipment | US$ in thousands | 455,281 | 510,614 | 570,525 | 274,930 |
| Fixed asset turnover | 9.59 | 10.25 | 6.48 | 10.06 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,365,240K ÷ $455,281K
= 9.59
The fixed asset turnover ratio measures how efficiently a company generates revenue from its fixed assets. A higher fixed asset turnover ratio indicates that the company is using its fixed assets more efficiently to generate sales.
Analyzing the trend of IAC Inc.'s fixed asset turnover over the past four years, we observe fluctuations in the ratio. In 2023, the fixed asset turnover ratio decreased to 9.59 from 10.25 in 2022, suggesting a slightly lower efficiency in utilizing fixed assets to generate sales. This could indicate either a decrease in sales relative to fixed assets or an increase in fixed assets without corresponding revenue growth.
In 2021, the fixed asset turnover ratio was 6.48, significantly lower than in the following years. This suggests a potential inefficiency in utilizing fixed assets to generate revenue during that period. However, the ratio rebounded to 10.06 in 2020, indicating a more efficient utilization of fixed assets to generate sales compared to 2021.
Overall, while there have been fluctuations in IAC Inc.'s fixed asset turnover ratio, it is crucial to further investigate the underlying reasons for these changes to identify whether they are indicative of operational inefficiencies, changes in business strategy, or external factors impacting the company's performance.
Peer comparison
Dec 31, 2023