IAC Inc. (IAC)
Debt-to-equity 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-equity ratio | 0.33 | 0.34 | 0.29 | 0.11 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,993,150K ÷ $6,077,860K
= 0.33
The debt-to-equity ratio of IAC Inc. has shown a fluctuating trend over the past four years. The ratio was 0.33 in 2023, slightly lower than the 0.34 in 2022, indicating a slight improvement in the company's leverage position. However, compared to 2021 and 2020 when the ratios were 0.29 and 0.11 respectively, the current ratio is higher, suggesting an increased reliance on debt financing relative to equity.
Despite the recent increase, the overall debt-to-equity ratio remains relatively low, indicating that the company has been effectively managing its debt levels in relation to shareholder equity. This suggests a conservative approach to capital structure, where the company has maintained a balance between debt and equity financing.
It is important for investors and stakeholders to monitor the trend of this ratio over time to assess the company's leverage position and financial risk. A stable or declining trend in the debt-to-equity ratio may indicate a healthier financial position, while a rising trend could signal increasing leverage and potential financial risks.
Peer comparison
Dec 31, 2023