IAC Inc. (IAC)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,807,233 | 3,875,956 | 4,048,577 | 4,210,640 | 4,365,230 | 4,553,650 | 4,743,210 | 4,994,200 | 5,235,270 | 5,148,260 | 4,771,428 | 4,238,395 | 3,789,043 | 3,478,422 | 3,342,731 | 3,239,545 | 3,047,681 | 4,920,632 | 4,837,637 | 4,799,961 |
| Total current assets | US$ in thousands | 2,485,040 | 2,400,900 | 2,368,290 | 2,311,160 | 2,240,590 | 2,212,050 | 2,198,410 | 2,379,720 | 2,561,140 | 2,481,160 | 2,738,490 | 2,784,300 | 3,098,890 | 3,912,630 | 3,888,770 | 4,384,840 | 4,119,320 | 4,205,470 | 3,288,330 | 2,481,450 |
| Total current liabilities | US$ in thousands | 886,192 | 874,516 | 885,019 | 855,461 | 950,490 | 1,023,210 | 1,034,190 | 998,547 | 1,079,990 | 1,085,250 | 1,313,830 | 1,331,540 | 1,607,660 | 748,636 | 642,676 | 776,944 | 750,901 | 780,235 | 704,550 | 663,279 |
| Working capital turnover | 2.38 | 2.54 | 2.73 | 2.89 | 3.38 | 3.83 | 4.07 | 3.62 | 3.53 | 3.69 | 3.35 | 2.92 | 2.54 | 1.10 | 1.03 | 0.90 | 0.90 | 1.44 | 1.87 | 2.64 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,807,233K ÷ ($2,485,040K – $886,192K)
= 2.38
The working capital turnover ratio for IAC Inc. has shown a fluctuating trend over the analyzed period from March 31, 2020, to December 31, 2024. The ratio measures the efficiency of the company in utilizing its working capital to generate sales revenue.
Initially, in March 2020, the working capital turnover stood at 2.64, indicating that for every $1 of working capital, the company generated $2.64 in sales. However, over the subsequent quarters, the ratio decreased, reaching its lowest point of 0.90 by December 2020. This suggests a decline in the efficiency of utilizing working capital to generate revenue during this period.
From March 2021 onwards, there was a gradual improvement in the working capital turnover ratio, with slight fluctuations in the subsequent quarters. By December 2022, the ratio reached a peak of 3.53, indicating a significant enhancement in the company's ability to generate sales revenue relative to its working capital.
From March 2023 to December 2024, the working capital turnover ratio remained relatively stable, fluctuating between 2.38 and 4.07. This stability could imply that IAC Inc. has maintained a consistent level of efficiency in utilizing its working capital to drive sales during this period.
Overall, the upward trend in the working capital turnover ratio from 2021 to 2022 indicates an improvement in operational efficiency and effective management of working capital by IAC Inc. Additionally, the relatively stable ratio from 2023 to 2024 suggests a continued focus on optimizing working capital utilization to support the company's revenue generation activities.
Peer comparison
Dec 31, 2024