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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| 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 |
| 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