IAC Inc. (IAC)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -310,795 | -430,599 | -587,719 | -532,200 | -78,585 | 57,942 | 413,983 | -585,816 | -1,468,254 | -1,459,120 | -1,356,025 | 21,809 | 695,617 | 1,231,707 | 1,411,744 | 992,390 | 234,438 | 337,756 | 167,059 | 277,296 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 5,577,900 | 5,760,040 | 6,008,360 | 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 | 7,180,990 | 7,209,180 | 7,178,850 | 6,688,140 | 6,597,580 | 6,194,230 | 4,647,540 | 3,917,240 |
| Return on total capital | -5.57% | -7.48% | -9.78% | -8.68% | -1.29% | 1.01% | 6.77% | -9.35% | -24.75% | -24.71% | -22.64% | 0.32% | 9.69% | 17.09% | 19.67% | 14.84% | 3.55% | 5.45% | 3.59% | 7.08% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-310,795K ÷ ($—K + $5,577,900K)
= -5.57%
The return on total capital for IAC Inc. has shown fluctuations over the years, ranging from positive to negative values. Based on the data provided, the return on total capital for IAC Inc. was positive and relatively stable from March 31, 2020, to June 30, 2021, with values ranging between 3.59% and 19.67%. This indicates that the company was effectively generating returns on its total capital during this period.
However, starting from September 30, 2021, the return on total capital began to decline significantly, turning negative from June 30, 2022, until December 31, 2024. The negative values suggest that the company's capital structure may not be generating sufficient returns to cover the costs associated with capital. This could indicate challenges in the company's profitability and efficiency in utilizing its capital resources.
Overall, the trend in the return on total capital for IAC Inc. highlights the importance of monitoring and managing the company's capital structure to ensure sustainable profitability and value creation for its shareholders.
Peer comparison
Dec 31, 2024