IAC Inc. (IAC)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,798,170 | 1,297,440 | 1,417,390 | 2,118,730 | 3,366,180 |
| Short-term investments | US$ in thousands | 0 | 148,998 | 239,373 | 19,788 | 224,979 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 886,192 | 950,490 | 1,079,990 | 1,607,660 | 750,901 |
| Quick ratio | 2.03 | 1.52 | 1.53 | 1.33 | 4.78 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,798,170K
+ $0K
+ $—K)
÷ $886,192K
= 2.03
The quick ratio of IAC Inc. has shown a decreasing trend over the years, from 4.78 as of December 31, 2020, to 1.33 as of December 31, 2021. This decline may indicate that the company's ability to meet its short-term obligations with its most liquid assets has weakened. However, there was a slight improvement in the quick ratio for the subsequent years, reaching 1.53 as of December 31, 2022, 1.52 as of December 31, 2023, and 2.03 as of December 31, 2024.
While the quick ratio for 2021 was below the ideal value of 1.0, suggesting potential liquidity concerns, the subsequent years' ratios indicate a better capability to cover immediate liabilities with quick assets. It is essential to monitor the quick ratio closely to ensure the company maintains sufficient liquidity levels to meet its short-term financial obligations.
Peer comparison
Dec 31, 2024