Inter Parfums Inc (IPAR)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 5.17 | 4.28 | 4.80 | 4.24 | 4.80 | 4.32 | 4.84 | 4.25 | 5.19 | 4.29 | 3.84 | 3.92 | 4.19 | 3.80 | 7.10 | 4.98 | 5.28 | 4.05 | 4.62 | 4.04 | |
| DSO | days | 70.62 | 85.27 | 76.11 | 86.14 | 76.09 | 84.42 | 75.38 | 85.80 | 70.34 | 85.10 | 95.15 | 93.11 | 87.14 | 96.10 | 51.44 | 73.30 | 69.18 | 90.18 | 78.93 | 90.37 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.17
= 70.62
Interpreting the days of sales outstanding (DSO) for Inter Parfums, Inc. reveals the number of days it takes the company to collect revenue after making a sale. A lower DSO indicates quicker payment collection and better liquidity management. Over the past eight quarters, the DSO has shown fluctuations with the highest value of 85.80 days in Q1 2023 and the lowest value of 70.62 days in Q4 2023. Generally, the DSO has ranged from approximately 70 to 85 days, suggesting a moderate collection period.
The recent decrease in DSO from Q3 2023 to Q4 2023 indicates an improvement in the company's efficiency in collecting receivables. However, it is essential to monitor DSO trends continuously to ensure the company maintains a healthy cash flow and efficient working capital management. Further analysis, along with benchmarking against industry standards, would provide deeper insights into the effectiveness of Inter Parfums, Inc.'s credit and collection policies.
Peer comparison
Dec 31, 2023