IAC Inc. (IAC)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Total assets | US$ in thousands | 10,371,200 | 10,393,600 | 12,302,600 | 9,161,710 |
| Total stockholders’ equity | US$ in thousands | 6,077,860 | 5,931,610 | 7,175,230 | 6,597,580 |
| Financial leverage ratio | 1.71 | 1.75 | 1.71 | 1.39 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $10,371,200K ÷ $6,077,860K
= 1.71
The financial leverage ratio for IAC Inc. has shown fluctuations over the past four years. As of December 31, 2023, the ratio stands at 1.71, a slight decrease from 1.75 in the previous year. This indicates that the company's reliance on debt to finance its operations has decreased slightly. However, compared to the ratio of 1.39 in December 31, 2020, the current ratio demonstrates an overall higher level of financial leverage.
A financial leverage ratio above 1 suggests that the company relies more on debt financing than equity financing, which can amplify returns but also increase financial risk. The fluctuations in the ratio over the years may indicate changes in the company's capital structure and borrowing levels. It is essential for investors and stakeholders to monitor these changes closely to assess the company's ability to manage its debt obligations effectively.
Peer comparison
Dec 31, 2023