IAC Inc. (IAC)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,807,230 | 4,365,240 | 5,235,280 | 3,699,630 | 2,764,540 |
| Total current assets | US$ in thousands | 2,485,040 | 2,240,590 | 2,561,140 | 3,098,890 | 4,119,320 |
| Total current liabilities | US$ in thousands | 886,192 | 950,490 | 1,079,990 | 1,607,660 | 750,901 |
| Working capital turnover | 2.38 | 3.38 | 3.53 | 2.48 | 0.82 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,807,230K ÷ ($2,485,040K – $886,192K)
= 2.38
The working capital turnover for IAC Inc. has shown a significant improvement over the years, increasing from 0.82 in December 31, 2020, to 2.48 in December 31, 2021, indicating that the company is more efficient in utilizing its working capital to generate sales.
Further, the ratio has continued to rise steadily, reaching 3.53 in December 31, 2022, and maintaining at a high level around 3.38 in December 31, 2023. This upward trend suggests that IAC Inc. has been able to effectively manage its working capital to support its revenue growth and operational activities.
However, there was a slight decrease in the working capital turnover to 2.38 in December 31, 2024, which may be a signal for the company to closely monitor and optimize its working capital management practices to sustain its operational efficiency. Overall, the upward trend in working capital turnover reflects positively on IAC Inc.'s ability to generate sales relative to its investment in working capital.
Peer comparison
Dec 31, 2024