IAC Inc. (IAC)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,297,440 | 1,417,390 | 2,118,730 | 3,366,180 |
| Short-term investments | US$ in thousands | 148,998 | 239,373 | 19,788 | 224,979 |
| Total current liabilities | US$ in thousands | 950,490 | 1,079,990 | 1,381,500 | 750,901 |
| Cash ratio | 1.52 | 1.53 | 1.55 | 4.78 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,297,440K
+ $148,998K)
÷ $950,490K
= 1.52
The cash ratio of IAC Inc. has shown a downward trend over the past three years. From a high of 4.78 in 2020, the ratio decreased to 1.55 by the end of 2021 and further declined to 1.53 in 2022 and 1.52 in 2023.
A cash ratio above 1 indicates that the company has sufficient cash and cash equivalents to cover its short-term liabilities. While a declining trend in the cash ratio can be concerning, it is important to consider other factors such as the company's operational efficiency, profitability, and cash flow management practices to gain a comprehensive understanding of its financial health.
Therefore, the decreasing cash ratio of IAC Inc. suggests a potential reduction in its liquidity position over the years, which may warrant further investigation into the company's overall financial performance and management of its cash resources.
Peer comparison
Dec 31, 2023