IAC Inc. (IAC)

The solvency ratios of IAC Inc. reflect the company's ability to meet its financial obligations and remain financially stable over the years. The Debt-to-assets ratio has remained relatively stable around 0.19 in 2023 and 2022, indicating that only a small portion of the company's assets are financed by debt. However, it has increased from 0.08 in 2020 to 0.17 in 2021.

Furthermore, the Debt-to-capital and Debt-to-equity ratios also show a consistent pattern of the company relying more on debt as a source of financing. The Debt-to-capital ratio has increased from 0.10 in 2020 to 0.25 in 2023 and 2022, while the Debt-to-equity ratio has also increased from 0.11 in 2020 to 0.34 in 2022, and then decreased slightly to 0.33 in 2023.

Moreover, the Financial leverage ratio, which measures the proportion of a company's assets that are financed by debt compared to equity, has shown an increasing trend from 1.39 in 2020 to 1.71 in 2023. This indicates that the company has been taking on more debt relative to equity to finance its operations and investments.

Overall, the solvency ratios of IAC Inc. suggest a shift towards higher reliance on debt financing in recent years, which may increase the company's financial risk and raise concerns about its ability to repay debts in the long term. Investors and stakeholders should closely monitor these trends and evaluate the company's overall financial health and sustainability.

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Coverage ratios

The interest coverage ratio for IAC Inc. has fluctuated over the past four years, indicating varying levels of the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT).

In 2023, the interest coverage ratio improved to 3.38, suggesting that the company's EBIT was 3.38 times its interest expenses for the year. This indicates a moderate ability to meet interest payments from operating earnings.

The negative interest coverage ratio of -12.63 in 2022 is a concerning sign, as it implies that the company's EBIT was insufficient to cover its interest expenses. This may signal financial distress and raise questions about the company's ability to meet its debt obligations.

The significantly high interest coverage ratios of 22.50 in 2021 and 14.86 in 2020 indicate a strong ability to cover interest payments with operating earnings, reflecting a healthy financial position and a lower risk of default on debt obligations during those years.

Overall, fluctuations in the interest coverage ratio of IAC Inc. over the period suggest varying levels of financial stability and efficiency in managing interest expenses relative to operating income. It is important for investors and stakeholders to monitor this ratio closely to assess the company's financial health and risk management.