IAC Inc. (IAC)
Liquidity ratios
| 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 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.70 | 2.36 | 2.16 | 2.13 | 2.38 | 2.37 | 2.29 | 2.08 | 2.09 | 2.23 | 5.23 | 6.05 | 5.64 | 5.49 | 5.39 | 4.67 | 3.74 |
| Quick ratio | 2.46 | 2.09 | 1.90 | 1.90 | 2.14 | 2.10 | 2.04 | 1.87 | 1.88 | 2.05 | 5.02 | 5.84 | 7.90 | 5.14 | 6.82 | 5.12 | 3.52 |
| 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 |
IAC Inc.'s liquidity ratios indicate the company's ability to meet short-term obligations with its current assets. The current ratio has varied over the quarters but has generally been above 2, indicating that the company has more than enough current assets to cover its current liabilities. The trend shows some fluctuations, but overall, the company has maintained a strong current ratio.
The quick ratio, which excludes inventory from current assets, also demonstrates a strong liquidity position for IAC Inc. It has generally been above 2, implying that the company can cover its short-term liabilities with its most liquid assets.
The cash ratio reflects IAC Inc.'s ability to pay off its current liabilities using only its cash and cash equivalents. The company's cash ratio has also shown strength over the periods, consistently above 1, showing a healthy ability to cover short-term obligations with readily available cash.
Overall, the liquidity ratios of IAC Inc. paint a positive picture of the company's financial health, with strong indications of its ability to meet short-term obligations and maintain liquidity in the face of changing business conditions.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 32.76 | 36.28 | 30.62 | 30.99 | 31.71 | 33.80 | 31.20 | 37.22 | 35.51 | 51.35 | 22.15 | 10.80 | 13.61 | -5.49 |
The cash conversion cycle (CCC) of IAC Inc. has fluctuated over the past few quarters. The CCC indicates the time it takes for a company to convert its investments in inventory and other resources into cash inflows from sales.
From the data provided, it is evident that IAC Inc.'s cash conversion cycle has been somewhat volatile. In the most recent quarter (March 31, 2024), the CCC stood at 32.76 days, which represents the average number of days it takes for the company to sell its inventory, collect receivables, and pay its suppliers.
Comparing this to previous quarters, we observe variations in the CCC. For instance, in December 2021, the CCC was only 10.80 days, indicating a relatively efficient working capital management. However, in September 2021, the CCC increased significantly to 51.35 days, reflecting a potential challenge in managing working capital effectively during that period.
Overall, the trend in IAC Inc.'s cash conversion cycle indicates the company's ability to efficiently manage its working capital and liquidity position. Analyzing the CCC over time provides insights into the company's operational efficiency and effectiveness in managing its cash flows.