Inter Parfums Inc (IPAR)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	1,196,987	1,151,708	1,086,927	1,032,032	999,058	912,548	891,619	855,209	815,722	712,070	646,293	538,404	514,600	541,868	567,171	655,924	671,583	669,889	657,541	644,357
Inventory	US$ in thousands	371,859	364,270	360,018	323,700	289,984	283,237	265,835	227,108	198,914	156,025	163,482	148,685	158,822	178,852	194,831	169,477	167,809	167,114	180,064	165,389
Inventory turnover		3.22	3.16	3.02	3.19	3.45	3.22	3.35	3.77	4.10	4.56	3.95	3.62	3.24	3.03	2.91	3.87	4.00	4.01	3.65	3.90

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,196,987K ÷ $371,859K
= 3.22

Inter Parfums, Inc.'s inventory turnover has been relatively consistent over the past eight quarters. The company's inventory turnover ratio ranged from 1.22 to 1.50 during this period. Overall, the inventory turnover ratio averaged around 1.31, indicating that, on average, the company sells and replaces its inventory approximately 1.31 times per year.

A lower inventory turnover ratio may suggest inventory management inefficiencies or overstocking, leading to potential holding costs and obsolescence risk. Conversely, a higher ratio indicates efficient inventory management and a quicker turnover of goods.

Inter Parfums, Inc. maintained a stable inventory turnover performance, with minor fluctuations observed. Further analysis of the company's inventory levels and sales trends could provide insights into the effectiveness of its inventory management strategies.