IAC Inc. (IAC)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Gross profit | US$ in thousands | -54,746 | -330,067 | 54,695 | 1,949,800 |
| Revenue | US$ in thousands | 4,365,240 | 5,235,280 | 3,699,630 | 2,764,540 |
| Gross profit margin | -1.25% | -6.30% | 1.48% | 70.53% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $-54,746K ÷ $4,365,240K
= -1.25%
The gross profit margin of IAC Inc. has shown significant fluctuations over the past four years. In 2020, the company achieved a high gross profit margin of 70.53%, indicating that a majority of its revenues were retained after accounting for the cost of goods sold. However, there was a sharp decline in gross profit margin to 1.48% in 2021, suggesting challenges in managing production costs or pricing strategies.
Moreover, the trend worsened in 2022, with a negative gross profit margin of -6.30%, signifying that the cost of goods sold exceeded the revenues generated from sales. This could reflect pricing pressures or increased production costs during the year. The situation deteriorated further in 2023, with a significantly negative gross profit margin of -1.25%.
Overall, the erratic performance of IAC Inc.'s gross profit margin raises concerns about the company's ability to effectively control its production costs and maintain profitability. Further analysis of the factors influencing this metric is essential to address the downward trend and implement corrective measures to improve financial performance.
Peer comparison
Dec 31, 2023