IAC Inc. (IAC)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 2.80 | 2.36 | 2.37 | 1.93 | 5.49 |
| Quick ratio | 2.03 | 1.52 | 1.53 | 1.33 | 4.78 |
| Cash ratio | 2.03 | 1.52 | 1.53 | 1.33 | 4.78 |
Based on the provided data, IAC Inc.'s liquidity ratios show a fluctuating trend over the years.
The current ratio decreased from 5.49 in 2020 to 1.93 in 2021, indicating a potential decrease in the company's ability to meet its short-term obligations with its current assets. However, the ratio improved in the subsequent years, reaching 2.80 by the end of 2024. This suggests that IAC Inc.'s liquidity position has strengthened from 2021 to 2024.
The quick ratio followed a similar trend, declining from 4.78 in 2020 to 1.33 in 2021 before showing improvements in the following years. The quick ratio stood at 2.03 at the end of 2024, indicating that the company has an adequate level of liquid assets to cover its short-term liabilities.
The cash ratio, which is a more stringent measure of liquidity, mirrored the trend of the quick ratio, displaying a decrease from 4.78 in 2020 to 1.33 in 2021, followed by improvements in the subsequent years. The cash ratio stood at 2.03 by the end of 2024, signifying an enhancement in IAC Inc.'s ability to cover its short-term obligations solely with cash.
Overall, the liquidity ratios of IAC Inc. show fluctuations but demonstrate an overall improvement in liquidity position from 2021 to 2024. This indicates that the company has managed its short-term liquidity more effectively over the years.
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 8.58 | 124.70 |
The cash conversion cycle of IAC Inc. has shown a significant improvement over the years, decreasing from 124.70 days as of December 31, 2020, to 8.58 days as of December 31, 2021. Notably, by December 31, 2022, the company has managed to bring its cash conversion cycle down to 0.00 days, which indicates an efficient management of its working capital. This trend continues in the following years, as the cash conversion cycle remains at 0.00 days as of December 31, 2023 and December 31, 2024. This suggests that IAC Inc. is able to quickly convert its investments in inventory and accounts receivable into cash, reflecting strong liquidity and operational efficiency.