Inter Parfums Inc (IPAR)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,317,700	1,086,700	879,500	539,000	713,500
Property, plant and equipment	US$ in thousands	169,222	166,722	149,352	19,580	11,107
Fixed asset turnover		7.79	6.52	5.89	27.53	64.24

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,317,700K ÷ $169,222K
= 7.79

Interpreting Inter Parfums, Inc.'s fixed asset turnover ratio over the past five years reveals fluctuations in the efficiency of the company's fixed assets utilization. The ratio, which measures the company's ability to generate sales revenue from its investment in fixed assets, has shown a decreasing trend from 2019 to 2021, indicating a decline in asset efficiency. However, a substantial increase in 2020 and a further significant rise in 2021 suggest a sudden improvement in the company's ability to generate sales from its fixed assets. This spike in 2020 and 2021 could be attributed to operational adjustments or strategic investments that yielded positive results. The fixed asset turnover ratio's continued increase in 2022 and 2023, albeit at a slower pace, implies that Inter Parfums has maintained its focus on leveraging its fixed assets effectively to drive revenue generation. Overall, the recent trend in the fixed asset turnover ratio indicates a positive direction in the company's asset utilization efficiency and revenue generation capabilities.