IAC Inc. (IAC)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 532,392 | -1,391,090 | 770,801 | 240,185 |
| Interest expense | US$ in thousands | 157,632 | 110,165 | 34,264 | 16,166 |
| Interest coverage | 3.38 | -12.63 | 22.50 | 14.86 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $532,392K ÷ $157,632K
= 3.38
The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher ratio indicates a better ability to cover interest payments.
Analyzing IAC Inc.'s interest coverage over the last four years shows fluctuations in its ability to cover interest expenses. In 2023, the interest coverage ratio improved to 3.38 from a negative value of -12.63 in 2022, indicating a positive shift in the company's ability to meet interest obligations. This can be attributed to potentially lower interest expenses or increased operating income.
Looking back at 2021, the interest coverage ratio was robust at 22.50, showcasing a strong ability to cover interest costs. Similarly, in 2020, the ratio was healthy at 14.86. These high ratios suggest that IAC Inc. had ample earnings to cover its interest payments during these years.
In light of the fluctuating trends, it is important to closely monitor IAC Inc.'s interest coverage ratio in the future to assess its financial health and ability to meet debt obligations.
Peer comparison
Dec 31, 2023