IAC Inc. (IAC)

Working capital turnover

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 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 3,699,625 3,114,950 2,976,428 2,873,086 2,768,435
Total current assets US$ in thousands 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 3,076,220 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 855,461 950,490 1,023,210 1,034,190 998,547 1,079,990 1,085,250 1,313,830 1,331,540 1,381,500 748,636 642,676 776,944 750,901 780,235 704,550 663,279
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

March 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,210,640K ÷ ($2,311,160K – $855,461K)
= 2.89

The working capital turnover of IAC Inc. has shown fluctuating trends over the past several quarters. The ratio has ranged from a low of 0.80 in March 2021 to a high of 4.07 in June 2023.

A higher working capital turnover ratio indicates that the company is efficiently utilizing its working capital to generate sales revenue. A rising trend in the ratio generally signifies improving efficiency in managing working capital.

Based on the data provided, we can observe that the working capital turnover ratio has generally been increasing since the end of 2021, peaking at 4.07 in June 2023. This indicates that IAC Inc. has been able to generate more sales revenue per unit of working capital over this period.

However, there was a slight decline in the ratio in the most recent quarter, dropping to 2.89 in March 2024. It is important to investigate the reasons behind this decrease to understand if it is a temporary fluctuation or a more concerning trend.

Overall, the analysis of IAC Inc.'s working capital turnover suggests varying levels of efficiency in managing working capital over the past quarters, with a recent dip in the ratio that warrants further examination.


Peer comparison

Mar 31, 2024