IAC Inc. (IAC)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 76,347 | 532,357 | 80,260 | 488,989 | -511,346 | -1,391,143 | -1,402,723 | -1,265,611 | 97,385 | 770,791 | 1,320,519 | 1,409,561 | 992,203 | 235,765 |
| Long-term debt | US$ in thousands | 1,982,130 | 1,993,150 | 1,999,800 | 2,006,460 | 2,013,110 | 2,019,760 | 2,026,400 | 2,033,040 | 2,039,660 | 2,046,240 | 494,373 | 494,195 | 705,987 | 712,277 |
| Total stockholders’ equity | US$ in thousands | 6,132,740 | 6,077,860 | 5,740,780 | 6,116,710 | 6,267,300 | 5,931,610 | 5,903,820 | 5,990,230 | 6,919,460 | 7,175,230 | 7,209,180 | 7,178,850 | 6,688,140 | 6,597,580 |
| 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% |
March 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $76,347K ÷ ($1,982,130K + $6,132,740K)
= 0.94%
Return on total capital is a key financial ratio that measures a company's efficiency in generating profits from its total invested capital. Looking at the historical trend for IAC Inc., we observe fluctuations in the return on total capital over the past several quarters.
In the most recent period ending March 31, 2024, IAC Inc. achieved a return on total capital of 0.94%. This indicates a relatively low return compared to the previous quarter-ending December 31, 2023, where the return was higher at 6.60%. This decline in return may raise questions regarding the company's capital management and profitability.
Analyzing further, we notice significant variability in the return on total capital over the past year. The company experienced negative returns in the first quarter of 2023 and the fourth quarter of 2022, with figures of -6.18% and -17.50%, respectively. These negative returns could suggest inefficiencies in capital allocation or operational challenges during those periods.
On a positive note, there were instances of strong performance, such as in the third quarter of 2021 and the fourth quarter of 2021, with return on total capital reaching 17.14% and 18.37%, respectively. These higher returns indicate effective utilization of capital resources to generate profits.
Overall, the fluctuations in return on total capital for IAC Inc. imply varying levels of efficiency in capital utilization and profitability over the analyzed period. Further investigation into the company's financial and operational strategies may be necessary to understand the factors influencing these fluctuations.
Peer comparison
Mar 31, 2024