Inter Parfums Inc (IPAR)

Activity ratios

Short-term

Turnover ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover	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	4.00	4.01	3.65	3.90
Receivables turnover	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	5.28	4.05	4.62	4.04
Payables turnover	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	12.41	15.06	13.41	10.24
Working capital turnover	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	1.83	1.90	1.85	1.76

Interpreting the activity ratios of Inter Parfums, Inc. provides insights into the efficiency of the company's operations.

1. Inventory Turnover: The inventory turnover ratio indicates how effectively the company is managing its inventory. A decreasing trend in this ratio over the quarters may indicate that Inter Parfums is taking longer to sell its inventory, which could tie up capital and lead to potential obsolescence issues.

2. Receivables Turnover: This ratio reflects how quickly the company collects its accounts receivable. An increasing trend in this ratio suggests that Inter Parfums is efficiently collecting payments from its customers, resulting in improved cash flows and reduced credit risk.

3. Payables Turnover: The payables turnover ratio demonstrates how efficiently the company is managing its accounts payable. A lower ratio could imply that Inter Parfums is taking longer to pay its suppliers, potentially straining supplier relationships or incurring additional costs such as late payment penalties.

4. Working Capital Turnover: This ratio measures how effectively the company is utilizing its working capital to generate revenue. An increasing trend in this ratio suggests that Inter Parfums is efficiently utilizing its working capital to support its business operations and generate sales.

Overall, a detailed analysis of these activity ratios can help stakeholders understand Inter Parfums' operational efficiency, liquidity, and relationships with suppliers and customers.

Average number of days

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	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	91.20	91.05	99.95	93.69
Days of sales outstanding (DSO)	days	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	69.18	90.18	78.93	90.37
Number of days of payables	days	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	29.40	24.23	27.23	35.65

Interpreting the activity ratios of Inter Parfums, Inc. provides insight into the efficiency of the company's operations.

1. Days of Inventory on Hand (DOH):
- The DOH measures the number of days it takes for the company to sell its inventory.
- From Q1 2022 to Q4 2023, the trend in DOH shows some fluctuations but generally increasing levels of inventory on hand.
- A higher DOH could indicate slow-moving inventory or potential issues with sales, which might tie up capital and increase storage costs.

2. Days of Sales Outstanding (DSO):
- DSO represents the average number of days it takes for the company to collect payment after making a sale.
- In the same period, the DSO also fluctuates, showing both decreases and increases.
- A high DSO may indicate delayed payments from customers or inefficiencies in the company's credit policies.

3. Number of Days of Payables:
- This ratio shows the average number of days the company takes to pay its suppliers.
- The number of days of payables fluctuated in the given period, with variations in payment terms to suppliers.
- A longer payment period might indicate that the company is taking advantage of trade credit terms or facing liquidity constraints.

Overall, the trends in these activity ratios suggest that Inter Parfums, Inc. may be facing challenges in managing its working capital efficiently. The company may need to pay attention to optimizing inventory levels, improving collections from customers, and managing payables effectively to enhance its operational performance and financial health.

Long-term

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Fixed asset turnover	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	64.24	63.40	64.70	72.22
Total asset turnover	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	0.86	0.89	0.86	0.83

Interpreting the long-term activity ratios of Inter Parfums, Inc., the fixed asset turnover ratio indicates the company's ability to generate sales revenue relative to its fixed assets. The trend shows a relatively stable performance with values ranging from 5.91 to 7.97 over the past eight quarters. This suggests that the company efficiently utilizes its fixed assets to generate sales, with higher turnover ratios indicating better asset utilization.

On the other hand, the total asset turnover ratio reflects how effectively the company generates sales in relation to its total assets. The data shows fluctuations in this ratio over the quarters, with values fluctuating between 0.80 and 0.96. A higher total asset turnover ratio indicates more efficient utilization of assets to generate sales revenue.

Overall, the company's fixed asset turnover and total asset turnover ratios demonstrate a generally positive trend, highlighting Inter Parfums, Inc.'s efficient utilization of fixed and total assets to generate sales revenue over the analyzed quarters.