IAC Inc. (IAC)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.71 | 1.71 | 1.75 | 1.76 | 1.39 |
IAC Inc. has demonstrated strong solvency ratios based on the provided data. The Debt-to-assets ratio, which measures the proportion of a company's assets financed by debt, has consistently remained at 0.00 from 2020 to 2024. This indicates that the company has not relied on debt to finance its assets during this period.
Similarly, the Debt-to-capital ratio and Debt-to-equity ratio have also maintained a stable and low level of 0.00 across the five-year period. These ratios also suggest that IAC Inc. has not heavily relied on debt to fund its operations and investments relative to its capital or equity base.
The Financial leverage ratio, which indicates the extent to which a company is using debt to finance its operations, has shown a slight increase from 1.39 in 2020 to 1.71 in 2024. Despite this increase, the ratio remains relatively low, indicating a conservative approach to leverage.
Overall, based on the solvency ratios analyzed, IAC Inc. appears to have a solid financial position with minimal dependence on debt for its operations and investments, and a conservative level of financial leverage.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 0.00 | 3.33 | -12.85 | 22.30 | 16.10 |
Interest coverage is a key financial ratio that indicates the ability of a company to meet its interest obligations from its operating income. In the case of IAC Inc., the interest coverage ratio has fluctuated over the years:
1. As of December 31, 2020, IAC Inc. had an interest coverage ratio of 16.10, indicating that the company's operating income was able to cover its interest expenses 16.10 times over. This suggests a healthy ability to meet interest payments.
2. By December 31, 2021, the interest coverage ratio had improved to 22.30, demonstrating further strength in the company's ability to cover its interest obligations from operating income.
3. However, as of December 31, 2022, the interest coverage ratio dropped significantly to -12.85. A negative interest coverage ratio indicates that the company's operating income was insufficient to cover its interest expenses during that period, raising concerns about the company's financial health and ability to service its debt.
4. By December 31, 2023, the interest coverage ratio improved to 3.33, but it still remained relatively low compared to previous years, indicating that the company's ability to cover its interest payments had improved but was not as robust as before.
5. Finally, as of December 31, 2024, the interest coverage ratio was reported as 0.00. This suggests that the company's operating income was exactly enough to cover its interest expenses, leaving no cushion for unexpected changes in the future.
Overall, the fluctuating interest coverage ratios of IAC Inc. over the years indicate varying degrees of ability to cover interest obligations, with significant improvements followed by a sharp decline in financial performance. It is essential for stakeholders to closely monitor this ratio to assess the company's debt repayment capacity and financial stability.