IAC Inc. (IAC)

Interest coverage ratio is a financial metric that indicates a company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio signifies a better ability to meet interest payments.

Analyzing IAC Inc.'s interest coverage ratios over the years:
- As of December 31, 2020, the interest coverage ratio was 16.10, indicating that the company's operating income was sufficient to cover its interest expenses.
- By December 31, 2021, the interest coverage ratio improved to 22.30, suggesting a stronger ability to meet interest payments.
- However, as of December 31, 2022, the interest coverage ratio significantly declined to -12.85, indicating that the company's operating income may not be adequate to cover its interest obligations. A negative ratio raises concerns about the company's financial health and ability to service its debts.
- By December 31, 2023, the interest coverage ratio improved to 3.33, but it still remains relatively low compared to previous years.
- Lastly, on December 31, 2024, the interest coverage ratio was reported as 0.00, which could indicate that the company's operating income is insufficient to cover its interest expenses.

Overall, fluctuations in the interest coverage ratios of IAC Inc. raise concerns about the company's ability to meet its interest payments, particularly given the negative and very low ratios in recent years. Investors and creditors may need to closely monitor these ratios to assess the company's financial sustainability.

Peer comparison

Dec 31, 2024