IAC Inc. (IAC)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,240,590 | 2,561,140 | 3,076,220 | 4,119,320 |
| Total current liabilities | US$ in thousands | 950,490 | 1,079,990 | 1,381,500 | 750,901 |
| Current ratio | 2.36 | 2.37 | 2.23 | 5.49 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,240,590K ÷ $950,490K
= 2.36
The current ratio of IAC Inc. has exhibited slight fluctuations over the past four years, with values of 2.36, 2.37, 2.23, and 5.49 for the years 2023, 2022, 2021, and 2020, respectively. A current ratio above 1 indicates that the company has more current assets than current liabilities to cover its short-term obligations.
In general, a current ratio above 1 is considered healthy as it suggests that the company is capable of meeting its short-term financial obligations. However, the significant drop in the current ratio from 5.49 in 2020 to 2.23 in 2021 raises some concerns, indicating a potential decrease in the company's ability to cover its current liabilities with its current assets efficiently.
The subsequent improvements in 2022 and 2023, with ratios of 2.37 and 2.36, respectively, show a recovery in the company's short-term liquidity position. While the recent ratios are above 2, which is generally considered a good benchmark for current ratios, it would be prudent for stakeholders to monitor the company's liquidity position closely to ensure it remains sustainable in the long term.
Peer comparison
Dec 31, 2023