Inter Parfums Inc (IPAR)
Days of inventory on hand (DOH)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.22 | 3.16 | 3.02 | 3.19 | 3.45 | 3.22 | 3.35 | 3.77 | 4.10 | 4.56 | 3.95 | 3.62 | 3.24 | 3.03 | 2.91 | 3.87 | 4.00 | 4.01 | 3.65 | 3.90 | |
| DOH | days | 113.39 | 115.44 | 120.90 | 114.48 | 105.94 | 113.29 | 108.82 | 96.93 | 89.01 | 79.98 | 92.33 | 100.80 | 112.65 | 120.47 | 125.38 | 94.31 | 91.20 | 91.05 | 99.95 | 93.69 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.22
= 113.39
Interpreting Inter Parfums, Inc.'s days of inventory on hand (DOH) over the past eight quarters reveals fluctuations in the company's inventory management efficiency. In Q2 and Q3 of 2023, the DOH increased to 299.42 days and 280.93 days, respectively, indicating a slower turnover rate and potentially excess inventory levels. This increase followed a declining trend in DOH from Q4 2022 to Q1 2023, suggesting more efficient inventory management during that period.
Comparing recent data to previous years, Q2 and Q3 of 2023 showed higher DOH compared to the same quarters in 2022, indicating a relative increase in the time taken to sell off inventory. However, the DOH in Q4 2023, at 283.60 days, is higher than the preceding year's Q4, indicating a potential need for improvement in inventory management efficiency.
Overall, Inter Parfums, Inc. should monitor and control its inventory levels closely to maintain a balance between ensuring product availability and minimizing excess stock that can lead to increased carrying costs and decreased profitability.
Peer comparison
Dec 31, 2023