Inter Parfums Inc (IPAR)

Payables 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
Payables	US$ in thousands	91,049	96,578	108,509	106,219	97,409	87,161	91,040	93,053	88,388	81,415	83,409	72,568	81,980	46,874	59,970	44,680	35,576	27,321	33,904	46,355
Payables turnover		14.50	13.36	11.54	11.57	12.29	13.21	11.94	11.09	11.30	11.21	10.69	11.78	9.95	15.19	10.78	12.05	14.46	19.83	16.73	14.15

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,320,640K ÷ $91,049K
= 14.50

Interpreting the payables turnover ratio trend of Inter Parfums Inc over the years, we observe fluctuations in the efficiency of managing its accounts payables. The payables turnover ratio measures how quickly a company pays its suppliers/vendors.

From March 31, 2020 to December 31, 2024, there are variations in the payables turnover ratio, ranging from 9.95 to 19.83. Initially, the ratio increased from 14.15 in March 2020 to 19.83 in September 2020, indicating improved efficiency in paying off its obligations. However, the ratio then decreased to 10.78 in June 2021, suggesting a slowdown in paying suppliers.

Thereafter, there are fluctuations in the ratio, with values ranging between 9.95 and 14.5. The decrease in ratios from June 2021 to December 2021 suggests delayed payments to suppliers. Subsequently, the ratio fluctuated between 10.69 and 14.50, indicating inconsistent performance in managing payables.

Overall, a declining trend in the payables turnover ratio may indicate inefficiencies or challenges in managing accounts payables. However, further analysis of the company's supplier relationships, payment terms, and cash flow management is necessary to understand the underlying reasons for the fluctuations in the payables turnover ratio.