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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| 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 |
| 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 |
| 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 |
| 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 |
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