IAC Inc. (IAC)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 532,392 | -1,391,090 | 770,801 | 240,185 |
| Long-term debt | US$ in thousands | 1,993,150 | 2,019,760 | 2,046,240 | 712,277 |
| Total stockholders’ equity | US$ in thousands | 6,077,860 | 5,931,610 | 7,175,230 | 6,597,580 |
| Return on total capital | 6.60% | -17.49% | 8.36% | 3.29% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $532,392K ÷ ($1,993,150K + $6,077,860K)
= 6.60%
The return on total capital for IAC Inc. has varied significantly over the past four years. In 2023, the return on total capital was 6.60%, indicating that the company generated a return of 6.60% for every dollar of total capital employed. This is a positive sign, showing an improvement compared to the negative return of -17.49% in 2022.
In 2021, the return on total capital was 8.36%, indicating another positive performance, albeit slightly lower than in 2023. In 2020, the return on total capital was 3.29%, showing a modest return on capital for that year.
Overall, the trend in return on total capital for IAC Inc. has shown volatility over the past four years, with both positive and negative returns. The positive returns in 2023 and 2021 suggest that the company was able to generate decent returns on the capital employed in those years, indicating potentially effective capital allocation and operational efficiency. However, the negative return in 2022 highlights potential challenges or inefficiencies that impacted the company's financial performance during that year.
Peer comparison
Dec 31, 2023