Inter Parfums Inc (IPAR)

Payables 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
Payables	US$ in thousands	91,049	97,409	88,388	81,980	35,576
Payables turnover		14.54	4.91	4.44	3.94	5.85

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,323,690K ÷ $91,049K
= 14.54

The payables turnover ratio of Inter Parfums Inc has fluctuated over the years based on the provided data. The ratio was 5.85 in December 2020, indicating that the company paid its accounts payable approximately 5.85 times during that year. Subsequently, the ratio decreased to 3.94 in December 2021, implying a slower rate of paying off its obligations.

In December 2022, there was a slight improvement in the payables turnover ratio, which stood at 4.44. This suggests that the company was able to manage its payables more effectively compared to the previous year. The trend continued in December 2023, with a ratio of 4.91, indicating a further enhancement in managing its accounts payable turnover.

Notably, in December 2024, there was a significant increase in the payables turnover ratio to 14.54, signifying a substantial improvement in the speed at which Inter Parfums Inc settled its payables compared to the previous years.

Overall, the analysis of the payables turnover indicates variations in the company's efficiency in managing its accounts payable over the years, with a notable improvement in performance by the end of December 2024.