IAC Inc. (IAC)

Quick ratio

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 US$ in thousands 1,506,990 1,297,440 1,252,210 1,326,990 1,398,840 1,417,390 1,607,380 1,796,200 1,852,600 2,118,730 3,404,910 3,476,070 3,599,240 3,366,180 3,459,210 2,445,030 2,029,070
Short-term investments US$ in thousands 136,459 148,998 173,717 115,559 202,138 239,373 16,343 30,315 59,012 19,788 26,794 21,620 2,242,700 224,979 1,633,940 957,980 69,912
Receivables US$ in thousands 463,785 536,650 519,286 521,666 537,945 607,809 587,567 633,323 593,280 693,208 322,757 256,134 293,350 270,453 227,316 205,377 234,753
Total current liabilities US$ in thousands 855,461 950,490 1,023,210 1,034,190 998,547 1,079,990 1,085,250 1,313,830 1,331,540 1,381,500 748,636 642,676 776,944 750,901 780,235 704,550 663,279
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

March 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,506,990K + $136,459K + $463,785K) ÷ $855,461K
= 2.46

The quick ratio of IAC Inc. has shown some fluctuations over the periods analyzed. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.

From March 2020 to March 2023, the quick ratio ranged from 3.52 to 7.90, indicating a strong ability to cover short-term liabilities with liquid assets during this period. However, starting from September 2023, the quick ratio decreased to 1.90 and continued to fluctuate between 1.87 and 2.14 until March 2024.

The quick ratio above 1 generally indicates that the company can meet its short-term obligations using its quick assets. A higher quick ratio is typically considered favorable as it suggests a stronger liquidity position. However, a very high quick ratio may indicate an inefficient use of assets.

It is important to consider the industry norms and trends in analyzing the quick ratio, as different industries may have varying liquidity requirements. Further analysis of IAC Inc.'s cash flows and overall financial health would provide more insights into the reasons behind the fluctuations in the quick ratio.


Peer comparison

Mar 31, 2024