IAC Inc. (IAC)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 536,650 | 607,809 | 693,208 | 270,453 |
| Total current liabilities | US$ in thousands | 950,490 | 1,079,990 | 1,381,500 | 750,901 |
| Quick ratio | 2.09 | 2.10 | 2.05 | 5.14 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,297,440K
+ $148,998K
+ $536,650K)
÷ $950,490K
= 2.09
The quick ratio, also known as the acid-test ratio, measures a company's ability to cover its short-term liabilities with its most liquid assets. A quick ratio above 1 indicates that a company can meet its current obligations using its liquid assets.
IAC Inc.'s quick ratio has remained relatively stable over the past four years, ranging from 2.05 to 5.14. A quick ratio of 2.09 as of December 31, 2023, indicates that the company had $2.09 in liquid assets available to cover each dollar of its current liabilities.
The trend in IAC Inc.'s quick ratio suggests that the company has maintained a strong ability to meet its short-term obligations with its quick assets. A quick ratio above 1 is generally considered favorable as it signifies that the company has sufficient liquid resources to settle its short-term debts.
Overall, IAC Inc.'s consistent quick ratio above 1 indicates a healthy liquidity position, providing assurance that the company can easily meet its near-term financial obligations.
Peer comparison
Dec 31, 2023