IAC Inc. (IAC)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.25 | 0.25 | 0.22 | 0.10 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,993,150K ÷ ($1,993,150K + $6,077,860K)
= 0.25
The debt-to-capital ratio of IAC Inc. has exhibited stability over the past four years, ranging between 0.10 and 0.25. This ratio indicates the proportion of the company's capital structure that is financed by debt, with the remainder being financed by equity. In 2020, the ratio was at its lowest point of 0.10, suggesting a lower reliance on debt for financing the company's operations. However, this ratio increased to 0.22 in 2021, indicating a higher proportion of debt in the company's capital structure compared to the previous year.
Notably, in the most recent two years, the debt-to-capital ratio remained constant at 0.25, indicating a consistent reliance on debt financing relative to total capital. This could suggest that the company has maintained a stable debt level in relation to its overall capital structure. Overall, a debt-to-capital ratio of 0.25 indicates that IAC Inc. finances 25% of its capital through debt, while the remaining 75% is funded by equity.
Peer comparison
Dec 31, 2023