IAC Inc. (IAC)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.19 | 0.19 | 0.20 | 0.19 | 0.19 | 0.19 | 0.19 | 0.19 | 0.17 | 0.17 | 0.05 | 0.05 | 0.07 | 0.08 |
| Debt-to-capital ratio | 0.24 | 0.25 | 0.26 | 0.25 | 0.24 | 0.25 | 0.26 | 0.25 | 0.23 | 0.22 | 0.06 | 0.06 | 0.10 | 0.10 |
| Debt-to-equity ratio | 0.32 | 0.33 | 0.35 | 0.33 | 0.32 | 0.34 | 0.34 | 0.34 | 0.29 | 0.29 | 0.07 | 0.07 | 0.11 | 0.11 |
| Financial leverage ratio | 1.69 | 1.71 | 1.75 | 1.72 | 1.72 | 1.75 | 1.77 | 1.79 | 1.72 | 1.71 | 1.31 | 1.29 | 1.46 | 1.39 |
The solvency ratios of IAC Inc. provide insights into the company's ability to meet its financial obligations in the long term.
The debt-to-assets ratio remained relatively stable around 0.19 to 0.20 over the past few quarters, indicating that the company finances a relatively small portion of its assets through debt.
The debt-to-capital ratio and debt-to-equity ratio both exhibited a similar trend of gradual increase, indicating a growing reliance on debt to fund the company's operations. The debt-to-capital ratio increased from 0.24 to 0.26, and the debt-to-equity ratio increased from 0.32 to 0.35 in the most recent quarter.
The financial leverage ratio, which measures the company's total debt relative to its equity, also shows an increasing trend, indicating higher financial risk as the ratio reached 1.75 in the latest quarter, up from 1.29 in the first quarter of 2021.
Overall, the increasing trend in the debt-related ratios suggests that IAC Inc. is taking on more debt to finance its growth or operations. Investors and creditors may need to monitor these ratios closely to assess the company's solvency and financial health in the long run.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio measures a company's ability to pay interest expenses on its debt. A higher ratio indicates that the company's earnings are sufficient to cover interest payments, while a lower ratio may indicate financial distress.
Looking at the historical trend of IAC Inc.'s interest coverage ratio, we observe significant fluctuations. In the most recent quarter ending March 31, 2024, the interest coverage ratio deteriorated to 0.48, indicating a decline in the company's ability to cover its interest expenses from operating profits. This may raise concerns about the company's financial health and its ability to service its debt obligations.
In contrast, the interest coverage ratio showed a substantial improvement in the fourth quarter of 2023, reaching 3.38. This suggests a stronger ability to meet interest payments from earnings. However, the ratio was negative in the first quarter of 2023, indicating that the company's operating profits were insufficient to cover interest expenses during that period.
The interest coverage ratio also exhibited extreme volatility in earlier periods, with negative values in some quarters such as the fourth quarter of 2022 and the first quarter of 2023. This indicates that the company may have faced challenges in generating enough earnings to cover its interest costs during those periods.
Overall, IAC Inc.'s interest coverage ratio has shown inconsistency and instability over the historical period, with frequent fluctuations between strong and weak levels. Investors and analysts should closely monitor the company's financial performance and debt servicing capability in light of these fluctuations.