Inter Parfums Inc (IPAR)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 5.17 3.95 4.23 4.42 5.17 4.28 4.80 4.24 4.80 4.32 4.84 4.25 5.19 4.29 3.84 3.92 4.19 3.80 7.10 4.98
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
Working capital turnover 2.50 2.30 2.60 2.51 2.56 2.52 2.51 2.34 2.45 2.15 2.18 1.92 1.90 1.74 1.63 1.29 1.21 1.26 1.46 1.76

Interpreting the activity ratios for Inter Parfums Inc, we observe the following trends:

1. Inventory Turnover:
- The inventory turnover ratio shows a fluctuating trend over the years, ranging from a low of 2.91 in June 2020 to a high of 4.56 in September 2021. It indicates that the company has been efficient in managing its inventory levels and selling products.

2. Receivables Turnover:
- The receivables turnover ratio demonstrates varying levels of how quickly the company collects its accounts receivables. It ranges from a low of 3.80 in September 2020 to a peak of 5.17 in December 2023. A higher turnover implies better efficiency in collecting payments from customers.

3. Payables Turnover:
- The payables turnover ratio indicates the speed at which the company pays its suppliers. It fluctuates between 9.95 in December 2021 and 16.73 in June 2020. A lower turnover may suggest a longer time taken to pay suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio illustrates how effectively the company is utilizing its working capital to generate revenue. The ratio steadily increases over the years, indicating improved efficiency in utilizing working capital to generate sales.

Overall, analyzing these activity ratios provides insights into the efficiency and effectiveness of Inter Parfums Inc in managing its inventory, receivables, payables, and working capital to drive its business operations and financial performance.

Average number of days

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
Days of inventory on hand (DOH) days 102.79 116.79 126.43 118.87 113.39 115.44 120.90 114.48 105.94 113.29 108.82 96.93 89.01 79.98 92.33 100.80 112.65 120.47 125.38 94.31
Days of sales outstanding (DSO) days 70.56 92.36 86.37 82.49 70.62 85.27 76.11 86.14 76.09 84.42 75.38 85.80 70.34 85.10 95.15 93.11 87.14 96.10 51.44 73.30
Number of days of payables days 25.16 27.33 31.63 31.55 29.70 27.62 30.57 32.91 32.29 32.56 34.14 30.97 36.68 24.03 33.87 30.29 25.23 18.40 21.82 25.80

Inter Parfums Inc's Days of Inventory on Hand (DOH) fluctuated between 79.98 and 126.43 days over the past five years, indicating some variation in the company's ability to manage its inventory efficiently. The trend shows a slight increase from 79.98 days in September 2021 to 126.43 days in June 2024.

The Days of Sales Outstanding (DSO) ranged from 51.44 to 96.10 days during the same period, with some fluctuations. Notably, there was a decrease in DSO from 96.10 days in September 2020 to 70.34 days in December 2021 before it increased to 92.36 days in September 2024.

The Number of Days of Payables ranged from 18.40 to 36.68 days over the past five years, showing relatively stable payment practices to suppliers. The trend indicates an increase in the Number of Days of Payables from 18.40 days in September 2020 to 36.68 days in December 2021 before it decreased to 25.16 days in December 2024.

Overall, Inter Parfums Inc's activity ratios show some fluctuations in inventory management, collection, and payment cycles, which may require further analysis to determine their impact on the company's operational efficiency and working capital management.

Long-term

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
Fixed asset turnover 9.46 8.54 8.48 8.12 7.79 7.94 7.17 6.76 6.52 6.44 5.97 5.91 5.90 5.98 5.56 31.58 27.53 45.87 52.55 60.82
Total asset turnover 1.03 0.96 1.00 0.99 0.96 0.93 0.89 0.83 0.83 0.89 0.88 0.80 0.77 0.76 0.68 0.52 0.61 0.65 0.75 0.87

Inter Parfums Inc's fixed asset turnover ratio has shown a general downward trend over the years, indicating a decreasing efficiency in generating sales from fixed assets. It peaked at 60.82 in March 2020 but has since decreased significantly to 9.46 by December 31, 2024.

On the other hand, the total asset turnover ratio has displayed some fluctuations but generally shows an increasing trend. The ratio was at its lowest at 0.52 in March 31, 2021, and has steadily improved to 1.03 by December 31, 2024. This indicates that the company is efficiently generating revenues relative to its total assets.

Overall, Inter Parfums Inc may need to reassess its utilization of fixed assets to improve efficiency in generating sales, while the increasing trend in total asset turnover reflects positive progress in generating revenue from its total assets.