IAC Inc. (IAC)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — | — | — | — | — | 120.26 | — | — | — | 2,570.13 |
| Receivables turnover | 9.08 | 8.13 | 8.77 | 9.09 | 9.28 | 8.61 | 8.76 | 7.53 | 7.14 | 5.34 | 9.65 | 11.62 | 9.79 | 10.24 |
| Payables turnover | 49.05 | 42.48 | 33.18 | 39.89 | 47.99 | 42.57 | 34.89 | 32.50 | 23.43 | 18.18 | 23.29 | 17.71 | 15.43 | 8.84 |
| Working capital turnover | 2.89 | 3.38 | 3.83 | 4.07 | 3.62 | 3.53 | 3.69 | 3.35 | 2.92 | 2.18 | 0.98 | 0.92 | 0.80 | 0.82 |
The activity ratios of IAC Inc. for the past several quarters show varying trends in how efficiently the company is managing its resources.
1. Inventory Turnover: The data for inventory turnover is not available for most of the quarters, except for an extremely high value of 2,570.13 in December 2021. This indicates that IAC Inc. effectively sold and replaced its inventory multiple times during that quarter.
2. Receivables Turnover: The receivables turnover ratio has been relatively stable, ranging between 5.34 and 11.62. This suggests that IAC's collection process for accounts receivable is operating consistently, turning receivables into cash within a reasonable timeframe.
3. Payables Turnover: The payables turnover ratio has shown an increasing trend, indicating that IAC is taking longer to pay its suppliers. The ratio increased from 8.84 in December 2020 to 49.05 in March 2024, which may be a strategic move to improve cash flow by stretching out payment terms.
4. Working Capital Turnover: The working capital turnover ratio fluctuates over the quarters, with values ranging from 0.80 to 4.07. The trend appears to be inconsistent, which could indicate varying efficiencies in managing working capital to generate sales revenue.
Overall, the analysis of activity ratios for IAC Inc. highlights the company's management of inventory, receivables, payables, and working capital. These ratios provide insights into the efficiency of IAC's operations and its ability to convert assets into revenue.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | 3.03 | — | — | — | 0.14 |
| Days of sales outstanding (DSO) | days | 40.20 | 44.87 | 41.62 | 40.14 | 39.32 | 42.38 | 41.66 | 48.45 | 51.09 | 68.39 | 37.82 | 31.41 | 37.27 | 35.66 |
| Number of days of payables | days | 7.44 | 8.59 | 11.00 | 9.15 | 7.61 | 8.57 | 10.46 | 11.23 | 15.58 | 20.08 | 15.67 | 20.61 | 23.66 | 41.29 |
Days of inventory on hand (DOH) measures how many days, on average, the company holds inventory before selling it. In the most recent period, IAC Inc. did not provide data for DOH, suggesting potential fluctuations in inventory management. However, in the previous period, DOH was 3.03 days, indicating a very efficient turnover of inventory.
Days of sales outstanding (DSO) measures the average number of days it takes for the company to collect its accounts receivable. IAC Inc.'s DSO has fluctuated over the past quarters, with the latest figure standing at 40.20 days. This implies that the company takes around 40 days, on average, to collect its sales revenue.
Number of days of payables measures how long it takes for a company to pay its suppliers. IAC Inc. has been efficient in managing its payables, with the most recent figure at 7.44 days. This indicates that the company takes just over a week to settle its supplier invoices.
Overall, while IAC Inc. shows efficiency in managing its payables, its inventory turnover and accounts receivable collection have shown some variability recently. Monitoring these activity ratios can help assess the company's operational efficiency and working capital management.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 9.92 | 9.59 | 9.52 | 9.59 | 10.81 | 10.25 | 8.82 | 8.14 | 7.35 | 6.48 | 10.75 | 10.88 | 10.28 | 10.07 |
| Total asset turnover | 0.41 | 0.42 | 0.45 | 0.45 | 0.46 | 0.50 | 0.49 | 0.44 | 0.36 | 0.30 | 0.33 | 0.32 | 0.30 | 0.30 |
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales. A higher ratio indicates better utilization of fixed assets. In the case of IAC Inc., we observe fluctuations in the fixed asset turnover ratio over the analyzed periods, ranging from 6.48 to 10.88.
Specifically, there seems to be an increasing trend in the fixed asset turnover ratio from March 2021 to March 2023, with values peaking at 10.88 in December 2021 and gradually declining afterward. This suggests that IAC was able to generate more sales relative to its fixed assets during the earlier periods but experienced some decrease in asset efficiency in more recent quarters.
On the other hand, the total asset turnover ratio reflects the company's overall efficiency in utilizing all its assets (both fixed and current) to generate sales. For IAC Inc., the total asset turnover ratio ranges from 0.30 to 0.50 during the analyzed periods.
We observe fluctuations in the total asset turnover ratio as well, with some variability seen over the periods. Notably, there was a slight increase in the total asset turnover ratio from December 2020 to June 2022, followed by a decrease in the most recent periods. This trend could indicate changes in the company's asset utilization efficiency over time.
In summary, while the fixed asset turnover ratio of IAC Inc. has shown fluctuations and a slight declining trend in recent periods, the total asset turnover ratio has also exhibited variability, indicating varying levels of asset efficiency in generating sales during the analyzed timeframe. Further analysis and comparison with industry benchmarks may provide additional insights into the company's long-term activity and asset management effectiveness.