IAC Inc. (IAC)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,506,990 | 1,297,440 | 1,252,210 | 1,326,990 | 1,398,840 | 1,417,390 | 1,607,380 | 1,796,200 | 1,852,600 | 2,118,730 | 3,404,910 | 3,476,070 | 3,599,240 | 3,366,180 | 3,459,210 | 2,445,030 | 2,029,070 |
| Short-term investments | US$ in thousands | 136,459 | 148,998 | 173,717 | 115,559 | 202,138 | 239,373 | 16,343 | 30,315 | 59,012 | 19,788 | 26,794 | 21,620 | 2,242,700 | 224,979 | 1,633,940 | 957,980 | 69,912 |
| 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 |
| Cash ratio | 1.92 | 1.52 | 1.39 | 1.39 | 1.60 | 1.53 | 1.50 | 1.39 | 1.44 | 1.55 | 4.58 | 5.44 | 7.52 | 4.78 | 6.53 | 4.83 | 3.16 |
March 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,506,990K
+ $136,459K)
÷ $855,461K
= 1.92
The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources of funding.
Analyzing the cash ratio of IAC Inc. over the past few quarters reveals fluctuations in its liquidity position. In the most recent quarter as of March 31, 2024, the cash ratio stood at 1.92, indicating that the company had $1.92 in cash and cash equivalents for every $1 of current liabilities. This represents an improvement from the previous quarter's ratio of 1.52, suggesting an increase in the company's liquidity.
Looking further back, the cash ratio experienced some variability, with values ranging from 1.39 to as high as 7.52 over the past few years. The significant spike in the cash ratio in the third quarter of 2021 and fourth quarter of 2021 indicates a notable increase in the company's cash reserves relative to its short-term obligations during that period.
Overall, while the cash ratio of IAC Inc. has shown some fluctuations, it generally indicates a healthy liquidity position, with the company maintaining sufficient cash to cover its short-term liabilities. It is important for investors and stakeholders to monitor these ratios continuously to assess the company's ability to meet its financial obligations in the short term.
Peer comparison
Mar 31, 2024