Inter Parfums Inc (IPAR)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	1,454,289	1,421,425	1,366,393	1,332,438	1,317,700	1,293,741	1,207,007	1,143,274	1,086,701	987,400	969,505	931,518	881,093	854,682	752,668	595,832	539,000	533,353	564,477	680,812
Property, plant and equipment	US$ in thousands	153,773	166,435	161,064	164,165	169,222	163,002	168,264	169,036	166,722	153,246	162,447	157,729	149,352	142,823	135,452	18,865	19,580	11,627	10,742	11,194
Fixed asset turnover		9.46	8.54	8.48	8.12	7.79	7.94	7.17	6.76	6.52	6.44	5.97	5.91	5.90	5.98	5.56	31.58	27.53	45.87	52.55	60.82

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,454,289K ÷ $153,773K
= 9.46

Fixed asset turnover measures how efficiently a company is using its fixed assets to generate sales. A higher fixed asset turnover ratio indicates better utilization of fixed assets.

Analyzing the fixed asset turnover trend of Inter Parfums Inc from March 31, 2020, to December 31, 2024, we observe fluctuations in the ratio. The ratio decreased significantly from 60.82 on March 31, 2020, to a low of 5.56 on June 30, 2021. This drop may indicate either a decrease in sales generated by fixed assets or an increase in the value of fixed assets.

From June 30, 2021, to December 31, 2024, the trend shows a gradual increase in the fixed asset turnover ratio, reaching 9.46 on December 31, 2024. This uptrend suggests improved efficiency in utilizing fixed assets to generate sales over this period.

Overall, the fixed asset turnover ratio of Inter Parfums Inc has shown variability over the analyzed period, with both declines and recoveries. It is important for the company to maintain a balance between the value of fixed assets and their contribution to revenue generation to ensure optimal operational efficiency.