IAC Inc. (IAC)
Liquidity ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.80 | 2.75 | 2.68 | 2.70 | 2.36 | 2.16 | 2.13 | 2.38 | 2.37 | 2.29 | 2.08 | 2.09 | 1.93 | 5.23 | 6.05 | 5.64 | 5.49 | 5.39 | 4.67 | 3.74 |
| Quick ratio | 2.03 | 2.00 | 1.91 | 1.92 | 1.53 | 1.39 | 1.39 | 1.60 | 1.53 | 1.50 | 1.39 | 1.44 | 1.33 | 4.58 | 5.43 | 7.93 | 4.78 | 4.90 | 4.17 | 3.16 |
| Cash ratio | 2.03 | 2.00 | 1.91 | 1.92 | 1.53 | 1.39 | 1.39 | 1.60 | 1.53 | 1.50 | 1.39 | 1.44 | 1.33 | 4.58 | 5.43 | 7.93 | 4.78 | 4.90 | 4.17 | 3.16 |
IAC Inc.'s liquidity ratios show a generally positive trend over the reporting period.
The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has improved steadily from 3.74 in March 31, 2020, to a peak of 6.05 in June 30, 2021. However, it decreased significantly to 1.93 by December 31, 2021, before stabilizing around 2.30 from September 30, 2022, onwards. This indicates that the company may have faced some liquidity challenges at the end of 2021 but managed to recover and maintain a stronger current ratio thereafter.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also shows a similar pattern of improvement and stabilization. The ratio peaked at 7.93 on March 31, 2021, signaling a strong ability to cover short-term obligations with highly liquid assets. However, it dropped to 1.33 by December 31, 2021, before gradually recovering to around 2.00 by the end of 2024.
The cash ratio, which is the most conservative liquidity measure and focuses solely on the company's cash and cash equivalents, mirrors the trends seen in the quick ratio. It peaked at 7.93 on March 31, 2021, dropped to 1.33 by December 31, 2021, and increased to around 2.00 by the end of 2024.
Overall, while IAC Inc.'s liquidity ratios demonstrate some variability, the company has generally maintained a strong liquidity position throughout the period, with current, quick, and cash ratios consistently above 1, indicating a healthy ability to meet its short-term obligations.
Additional liquidity measure
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 8.59 | 0.00 | 0.00 | 0.00 | 111.14 | 0.00 | 0.00 | 0.00 |
The cash conversion cycle of IAC Inc. has shown fluctuations over the past few years. The company had a significant cash conversion cycle of 111.14 days as of December 31, 2020, indicating that it took a considerable amount of time to convert its investments in raw materials into cash inflows from sales.
However, in subsequent periods, the cash conversion cycle improved significantly, with the company achieving cycle times of 8.59 days as of December 31, 2021. This improvement suggests that IAC Inc. became more efficient in managing its working capital and converting its inventory and receivables into cash.
From March 31, 2022, onwards, the company has consistently maintained a cash conversion cycle of 0.00 days, indicating that it effectively manages its cash flow, inventory levels, and accounts receivable turnover.
Overall, the trend in IAC Inc.'s cash conversion cycle indicates a positive development in its working capital management efficiency, leading to improved liquidity and potentially better financial performance.