Inter Parfums Inc (IPAR)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	1,323,690	478,622	392,278	322,598	208,269
Inventory	US$ in thousands	371,920	371,859	289,984	198,914	158,822
Inventory turnover		3.56	1.29	1.35	1.62	1.31

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,323,690K ÷ $371,920K
= 3.56

The inventory turnover for Inter Parfums Inc has shown some fluctuations over the years. In 2020, the inventory turnover was at 1.31, indicating that on average, the company's inventory was sold and replaced 1.31 times during the year. The following year, in 2021, the inventory turnover improved to 1.62, suggesting more efficient management of inventory. However, in 2022, the turnover decreased slightly to 1.35 before dropping further to 1.29 in 2023.

The most significant change occurred in 2024 when the inventory turnover surged to 3.56. This sharp increase indicates that Inter Parfums Inc was able to sell and replace its inventory more than three times during that year, reflecting potentially strong sales performance or enhanced inventory management strategies.

Overall, while there were fluctuations in inventory turnover over the years, the notable spike in 2024 suggests that the company made significant improvements in managing its inventory efficiently. It is essential for Inter Parfums Inc to maintain this momentum to optimize its working capital and maximize profitability.