IAC Inc. (IAC)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -310,795 | -430,599 | -587,719 | -532,200 | -78,585 | 57,942 | 413,983 | -585,816 | -1,468,254 | -1,459,120 | -1,356,025 | 21,809 | 695,617 | 1,231,707 | 1,411,744 | 992,390 | 234,438 | 337,756 | 167,059 | 277,296 |
| Interest expense (ttm) | US$ in thousands | 155,888 | 159,160 | 159,616 | 159,178 | 157,632 | 152,709 | 141,985 | 126,425 | 110,165 | 90,663 | 67,262 | 49,559 | 34,327 | 25,113 | 24,888 | 20,629 | 16,166 | 153,740 | 150,831 | 152,513 |
| Interest coverage | -1.99 | -2.71 | -3.68 | -3.34 | -0.50 | 0.38 | 2.92 | -4.63 | -13.33 | -16.09 | -20.16 | 0.44 | 20.26 | 49.05 | 56.72 | 48.11 | 14.50 | 2.20 | 1.11 | 1.82 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-310,795K ÷ $155,888K
= -1.99
The interest coverage ratio of IAC Inc. has exhibited significant fluctuations over the reporting periods provided.
From March 31, 2020, to June 30, 2021, the interest coverage steadily increased from 1.82 to a peak of 56.72 on June 30, 2021. This suggests that the company's earnings were consistently able to cover its interest expenses during this period.
However, starting from September 30, 2021, the interest coverage ratio began to decline, indicating potential challenges in meeting interest obligations with operating profits. This trend continued until the end of 2024, with the interest coverage ratio falling into negative territory from March 31, 2022. This implies that the company's earnings were insufficient to cover its interest expenses, raising concerns about its financial leverage and ability to service debt.
Overall, the analysis of IAC Inc.'s interest coverage ratio highlights a period of initially strong coverage followed by a significant deterioration, indicating potential financial strain and the need for closer monitoring of the company's debt management and profitability.
Peer comparison
Dec 31, 2024