IAC Inc. (IAC)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|
| Gross profit margin | -1.25% | -6.30% | 1.48% | 70.53% |
| Operating profit margin | -5.97% | -9.07% | -3.70% | -19.45% |
| Pretax margin | 8.59% | -28.68% | 19.91% | 8.10% |
| Net profit margin | 6.09% | -22.35% | 16.15% | 9.76% |
The profitability ratios of IAC Inc. show varying trends over the four-year period from 2020 to 2023. The gross profit margin, which represents the company's profitability after accounting for the cost of goods sold, fluctuated significantly during this time frame. It decreased from a high of 70.53% in 2020 to negative figures in 2022 and 2023, indicating challenges in maintaining a positive gross profit.
Similarly, the operating profit margin, which shows the company's profitability from its core operations, also displayed a downward trend, with negative margins in each of the four years. This suggests that IAC Inc. struggled to generate profits from its operating activities consistently over the period.
The pretax margin, which reflects the company's profitability before taxes, saw a mix of positive and negative figures. While it improved significantly in 2021, it decreased in 2022 before rebounding in 2023. This indicates fluctuations in the company's ability to generate profits before considering tax implications.
Finally, the net profit margin, which reflects the company's profitability after all expenses and taxes have been accounted for, also fluctuated over the period. While it showed a significant improvement in 2021, the margin decreased in 2022 before increasing again in 2023.
Overall, the profitability ratios of IAC Inc. reflect a mixed performance, with fluctuations in gross profit margin, operating profit margin, pretax margin, and net profit margin over the four-year period. Further analysis of the company's financial performance and strategic initiatives may be necessary to understand the factors driving these trends.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -2.51% | -4.57% | -1.11% | -5.87% |
| Return on assets (ROA) | 2.56% | -11.26% | 4.86% | 2.94% |
| Return on total capital | 6.60% | -17.49% | 8.36% | 3.29% |
| Return on equity (ROE) | 4.38% | -19.73% | 8.33% | 4.09% |
IAC Inc.'s profitability ratios show a mixed performance over the past four years. The Operating return on assets (Operating ROA) has improved from -5.87% in 2020 to -2.51% in 2023, indicating a positive trend in the company's ability to generate operating profits from its assets.
Return on assets (ROA) has also shown improvement over the years, moving from negative figures in 2020 and 2022 to a positive 2.56% in 2023. This suggests that the company's overall profitability relative to its total assets has increased, reflecting better efficiency in asset utilization.
Return on total capital has demonstrated significant improvement, increasing from 3.29% in 2020 to 6.60% in 2023. This indicates that IAC Inc. has been able to generate better returns for its total invested capital over the years.
Return on equity (ROE) has also shown a positive trend, with an increase from 4.09% in 2020 to 4.38% in 2023. This signifies that the company has been enhancing its profitability in relation to shareholders' equity.
Overall, the trend in IAC Inc.'s profitability ratios over the past four years suggests an improvement in the company's ability to generate profits from its operations, assets, and capital, which is a positive signal for investors. However, it is important to continue monitoring these ratios to assess the company's long-term profitability sustainability.