Inter Parfums Inc (IPAR)

Number of days of payables

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Payables turnover		4.91	4.44	3.94	5.85	4.95
Number of days of payables	days	74.28	82.24	92.76	62.35	73.80

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 4.91
= 74.28

Interpreting the trend in the number of days of payables for Inter Parfums, Inc. over the past five years reveals some interesting insights. The company's number of days of payables has varied, indicating changes in its ability to manage its trade payables effectively.

In 2023, the number of days of payables decreased to 74.29 days from 82.25 days in 2022. This could suggest that the company took fewer days to pay its trade payables in 2023, indicating a potential improvement in its liquidity management or negotiating more favorable payment terms with suppliers.

Comparing to 2021, where the number of days of payables was at a high of 92.75 days, the decrease in 2023 is even more evident. This might indicate a more efficient management of trade payables in the most recent year.

On the other hand, in 2020, the number of days of payables was relatively low at 62.35 days, indicating that the company paid its trade payables more quickly compared to the subsequent years. This could either be due to increased cash flow constraints or strategic efforts to maintain good relationships with suppliers.

Looking back to 2019, the number of days of payables was in line with 2023, suggesting similar payment behavior of the company towards its suppliers in those years.

Overall, the fluctuations in the number of days of payables for Inter Parfums, Inc. over the past five years demonstrate the company's dynamic approach to managing its trade payables, potentially influenced by various internal and external factors impacting its liquidity and operational strategies.