Inter Parfums Inc (IPAR)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	1,320,640	1,289,949	1,252,081	1,228,903	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
Inventory	US$ in thousands	371,920	412,758	433,716	400,209	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
Inventory turnover		3.55	3.13	2.89	3.07	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

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,320,640K ÷ $371,920K
= 3.55

Inter Parfums Inc's inventory turnover has shown some fluctuations over the years based on the provided data. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times within a specific period the inventory is sold and replaced.

From March 31, 2020, to December 31, 2024, Inter Parfums Inc's inventory turnover ratio ranged from a low of 2.91 in June 2020 to a high of 4.56 in September 30, 2021. The highest inventory turnover of 4.56 reflects that the company was able to sell and replace its inventory more than four times during that period, indicating efficient inventory management.

Overall, the data shows that Inter Parfums Inc's inventory turnover ratio has generally been within a reasonable range, suggesting the company has been effectively managing its inventory. Despite some fluctuations, the company has consistently maintained its inventory turnover above 3, indicating a healthy turnover rate. However, it is important for the company to monitor its inventory turnover to ensure optimal efficiency in managing its inventory levels.