Inter Parfums Inc (IPAR)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	1,451,240	1,317,700	1,086,700	879,500	539,000
Property, plant and equipment	US$ in thousands	153,773	169,222	166,722	149,352	19,580
Fixed asset turnover		9.44	7.79	6.52	5.89	27.53

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,451,240K ÷ $153,773K
= 9.44

The fixed asset turnover ratio for Inter Parfums Inc has demonstrated a declining trend over the years. From 27.53 in December 2020, it dropped to 5.89 in December 2021, indicating a substantial decrease in the efficiency of generating sales from fixed assets within one year. However, there was a slight improvement in the ratio in the following years, reaching 6.52 in December 2022, 7.79 in December 2023, and further to 9.44 by December 2024.

The significant decrease in the fixed asset turnover ratio in 2021 suggests that the company may have faced challenges in effectively utilizing its fixed assets to generate revenue during that period. Subsequent improvements in the ratio indicate that Inter Parfums Inc may have made operational adjustments or increased sales relative to its fixed asset base in the following years.

Overall, the company's fixed asset turnover ratio has shown volatility over the specified period, and further monitoring is recommended to assess the sustainability of the upward trend observed in recent years.