IAC Inc. (IAC)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Net income | US$ in thousands | 265,942 | -1,170,170 | 597,547 | 269,726 |
| Total stockholders’ equity | US$ in thousands | 6,077,860 | 5,931,610 | 7,175,230 | 6,597,580 |
| ROE | 4.38% | -19.73% | 8.33% | 4.09% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $265,942K ÷ $6,077,860K
= 4.38%
ROE, which is a key financial ratio indicating the profitability of a company in relation to its shareholders' equity, has shown varying performance for IAC Inc. over the past four years.
In 2023, the ROE improved to 4.38% from a negative figure of -19.73% in 2022. Despite the improvement, the ROE remains relatively low, suggesting that the company generated a modest return on the shareholders' equity in 2023.
The highest ROE of 8.33% was recorded in 2021, indicating a relatively better performance in generating profits from shareholders' equity compared to other years. However, the 2021 ROE was still moderate, and there is room for further improvement.
In 2020, the ROE was 4.09%, indicating a slightly lower return on equity compared to 2023. The trend of ROE in recent years suggests that IAC Inc. has been working on enhancing profitability in relation to shareholders' equity.
Overall, the analysis of ROE over the past four years indicates a mix of positive and negative trends in the company's ability to generate profits from the funds invested by shareholders. Further assessment of factors influencing the profitability and efficiency of utilizing equity capital would provide more insights into IAC Inc.'s financial performance.
Peer comparison
Dec 31, 2023