IAC Inc. (IAC)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 0.44% | -4.49% | -6.45% | -8.16% | -10.37% | -8.22% | -6.75% | -4.84% | -1.58% | 2.57% | 22.81% | 21.00% | 19.27% | 8.62% |
| Operating profit margin | -4.38% | -5.97% | -6.56% | -8.24% | -10.04% | -9.07% | -9.11% | -7.89% | -5.63% | -3.70% | -2.96% | -6.12% | -8.75% | -20.10% |
| Pretax margin | -1.97% | 8.58% | -1.59% | 7.32% | -12.77% | -28.68% | -29.01% | -27.93% | 1.13% | 19.91% | 41.59% | 46.52% | 33.82% | 7.93% |
| Net profit margin | -2.54% | 6.09% | -1.39% | 5.56% | -10.34% | -22.35% | -22.45% | -21.61% | 0.77% | 16.15% | 35.11% | 40.92% | 32.27% | 9.74% |
The profitability ratios of IAC Inc. indicate fluctuations over the given time periods. The gross profit margin, showing the percentage of revenue remaining after deducting the cost of goods sold, was historically robust, averaging around 10% before experiencing a sharp decline in recent periods, particularly in the last year where it turned negative.
The operating profit margin, representing the percentage of revenue that remains after deducting operating expenses, has been consistently negative for the past few quarters. This indicates that the company's core business operations have not been generating profits.
The pretax margin, indicating the company's profitability before taxes, has shown significant variability, swinging from negative to positive margins. However, the trend seems to be inconsistent, with periods of both high and low margins observed.
Lastly, the net profit margin, which reflects the company's overall profitability after all expenses have been deducted from revenues, also exhibits fluctuations. Despite a positive net profit margin in some quarters, it has generally been on a downward trend in recent periods, with the company facing challenges in generating profits after accounting for all costs.
Overall, the profitability ratios of IAC Inc. suggest a period of instability and challenges in maintaining consistent profitability in recent quarters, highlighting the need for a closer examination of the company's operational efficiency and cost management strategies.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -1.78% | -2.51% | -2.98% | -3.71% | -4.66% | -4.57% | -4.49% | -3.50% | -2.01% | -1.11% | -0.98% | -1.96% | -2.58% | -6.07% |
| Return on assets (ROA) | -1.03% | 2.56% | -0.63% | 2.50% | -4.80% | -11.26% | -11.07% | -9.59% | 0.27% | 4.86% | 11.60% | 13.11% | 9.52% | 2.94% |
| Return on total capital | 0.94% | 6.60% | 1.04% | 6.02% | -6.18% | -17.50% | -17.69% | -15.77% | 1.09% | 8.36% | 17.14% | 18.37% | 13.42% | 3.23% |
| Return on equity (ROE) | -1.74% | 4.38% | -1.10% | 4.31% | -8.24% | -19.73% | -19.58% | -17.22% | 0.47% | 8.33% | 15.17% | 16.97% | 13.86% | 4.09% |
IAC Inc.'s profitability ratios have fluctuated over the period under review:
1. Operating Return on Assets (Operating ROA): The trend for Operating ROA has been negative, with values ranging from -1.78% to -4.66% over the past year. This indicates that the company's core operations are not generating sufficient profits relative to its total assets.
2. Return on Assets (ROA): ROA has varied significantly, moving from -4.80% to 13.11% in the past year. The negative values suggest that the company's asset utilization and efficiency in generating profits have been inconsistent.
3. Return on Total Capital: Similarly, Return on Total Capital has shown fluctuations, with values between -17.50% and 18.37% over the period. This ratio reflects the company's ability to generate returns on both equity and debt capital employed.
4. Return on Equity (ROE): The ROE has also been volatile, with values ranging from -19.73% to 16.97%. This ratio reflects the returns generated for the company's shareholders and indicates how effectively the company is using their equity.
Overall, the company's profitability ratios suggest inconsistent performance, indicating challenges in effectively utilizing assets and capital to generate sustainable returns for both shareholders and creditors. Further analysis of the company's operational efficiency, cost management, and revenue generation strategies may be warranted to improve profitability in the future.