Inter Parfums Inc (IPAR)

Days of inventory on hand (DOH)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Inventory turnover 3.56 1.29 1.35 1.62 1.31
DOH days 102.55 283.58 269.82 225.06 278.34

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.56
= 102.55

Inter Parfums Inc's days of inventory on hand (DOH) has shown some fluctuations over the years based on the data provided. The trend indicates that the company had 278.34 days worth of inventory on hand as of December 31, 2020, which decreased to 225.06 days by December 31, 2021. Subsequently, the DOH increased to 269.82 days by December 31, 2022, followed by a relatively higher inventory holding period of 283.58 days by December 31, 2023.

However, there was a significant improvement in managing inventory levels by December 31, 2024, where the DOH decreased substantially to 102.55 days. This decline suggests that Inter Parfums Inc was able to optimize its inventory management, possibly through better forecasting, tighter control over stock levels, or more efficient inventory turnover.

Overall, the fluctuation in DOH over the years indicates the company's varying efficiency in managing its inventory. A lower DOH suggests better liquidity and efficient inventory management, while a higher DOH may indicate potential issues such as excessive inventory levels tying up capital or slow-moving inventory. Further analysis and comparison with industry benchmarks would provide more insights into the effectiveness of Inter Parfums Inc's inventory management strategies.