Inter Parfums Inc (IPAR)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	478,622	392,278	322,598	208,269	267,564
Payables	US$ in thousands	97,409	88,388	81,980	35,576	54,098
Payables turnover		4.91	4.44	3.94	5.85	4.95

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $478,622K ÷ $97,409K
= 4.91

The payables turnover ratio for Inter Parfums, Inc. has shown some fluctuation over the past five years. In 2023, the payables turnover ratio improved to 4.91 compared to the previous year's ratio of 4.44 in 2022. This suggests that the company was able to pay off its trade payables more efficiently in 2023.

However, when comparing the ratio to earlier years, we see that the payables turnover was lower in 2021 at 3.94, indicating a slower ability to pay off payables. The ratio bounced back in 2020 to 5.85, showing a significant improvement in payables management compared to 2021.

Looking further back to 2019, the payables turnover ratio was 4.95, which is relatively similar to the ratio observed in 2023. This indicates that the company's payables turnover efficiency in 2023 was consistent with its performance in 2019.

Overall, while there have been fluctuations in the payables turnover ratio for Inter Parfums, Inc. over the past five years, the company's ability to manage and pay off its trade payables seems to have improved in 2023 compared to the previous year, although not reaching the peak observed in 2020.