Inter Parfums Inc (IPAR)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 1.29 | 1.35 | 1.62 | 1.31 | 1.59 | |
| DOH | days | 283.58 | 269.82 | 225.06 | 278.34 | 228.92 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.29
= 283.58
Interpreting the days of inventory on hand (DOH) for Inter Parfums, Inc. over the past five years reveals fluctuations in the efficiency of managing inventory levels.
In 2023, the DOH figure increased to 283.60 days, indicating that, on average, the company held inventory for a longer duration compared to the previous year. This could suggest potential issues with inventory management, such as overstocking or slowing sales.
The year 2022 saw a decrease in DOH to 269.85 days, which might signify improved inventory turnover efficiency compared to 2021's 225.05 days. This reduction could reflect better sales or production planning, resulting in a lower average inventory holding period.
However, in 2020, the DOH increased significantly to 278.33 days, indicating a potential buildup of excess inventory, which could tie up financial resources and increase holding costs.
In contrast, in 2019, Inter Parfums exhibited a more efficient inventory management approach with 228.91 days of inventory on hand. This lower DOH value implies quicker inventory turnover, potentially leading to reduced carrying costs and optimized cash flow.
Overall, fluctuations in the DOH metric suggest varying levels of effectiveness in managing inventory levels over the past five years, with periods of potential inefficiencies alternating with improvements in inventory turnover. Vigilant monitoring and strategic adjustments in inventory management practices may help enhance operational efficiency and financial performance for Inter Parfums in the future.
Peer comparison
Dec 31, 2023