IAC Inc. (IAC)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 76,347 | 532,357 | 80,260 | 488,989 | -511,346 | -1,391,143 | -1,402,723 | -1,265,611 | 97,385 | 770,791 | 1,320,519 | 1,409,561 | 992,203 | 235,765 |
| Interest expense (ttm) | US$ in thousands | 159,178 | 157,632 | 152,709 | 141,985 | 126,425 | 110,165 | 90,663 | 67,262 | 49,559 | 34,264 | 25,050 | 24,825 | 20,566 | 16,166 |
| Interest coverage | 0.48 | 3.38 | 0.53 | 3.44 | -4.04 | -12.63 | -15.47 | -18.82 | 1.97 | 22.50 | 52.72 | 56.78 | 48.24 | 14.58 |
March 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $76,347K ÷ $159,178K
= 0.48
IAC Inc.'s interest coverage ratio has fluctuated significantly over the past few quarters, indicating varying levels of the company's ability to meet its interest obligations with its earnings.
The interest coverage ratio was particularly low in the first quarter of 2024, at 0.48, suggesting that the company's earnings were only sufficient to cover less than half of its interest expenses during that period. This may raise concerns about the company's financial health and its ability to service its debt.
In contrast, the interest coverage ratio improved in the fourth quarter of 2023 to 3.38, indicating that the company's earnings were able to cover its interest expenses more than three times over. This suggests a stronger financial position compared to the first quarter of 2024.
However, it is worth noting that the interest coverage ratio was negative in the first and fourth quarters of 2023, which is a red flag indicating that the company's earnings were not sufficient to cover its interest expenses during those periods.
Overall, the fluctuating nature of IAC Inc.'s interest coverage ratio suggests potential volatility in its ability to meet interest obligations with its earnings, warranting further investigation into the company's financial performance and debt management strategies.
Peer comparison
Mar 31, 2024