IAC Inc. (IAC)
Working capital 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 |
| Total current assets | US$ in thousands | 2,240,590 | 2,561,140 | 3,076,220 | 4,119,320 |
| Total current liabilities | US$ in thousands | 950,490 | 1,079,990 | 1,381,500 | 750,901 |
| Working capital turnover | 3.38 | 3.53 | 2.18 | 0.82 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,365,240K ÷ ($2,240,590K – $950,490K)
= 3.38
IAC Inc.'s working capital turnover has fluctuated over the past four years. The ratio measures the efficiency of the company in utilizing its working capital to generate revenue.
In 2023 and 2022, the company had working capital turnover ratios of 3.38 and 3.53 respectively, indicating that it generated $3.38 and $3.53 of revenue for every dollar of working capital invested. These figures suggest a relatively efficient use of working capital in these years.
On the other hand, in 2021 and 2020, the working capital turnover ratios were 2.18 and 0.82 respectively. The lower ratios in these years indicate a less efficient utilization of working capital to generate revenue, particularly in 2020 where the ratio was significantly lower, suggesting a potential inefficiency in working capital management.
Overall, while the company showed improvement in the efficient utilization of working capital in 2023 and 2022, there is indication of room for improvement in 2021 and 2020 to enhance the effectiveness of working capital management.
Peer comparison
Dec 31, 2023