Inter Parfums Inc (IPAR)

Receivables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	1,451,240	1,317,700	1,086,700	879,500	539,000
Receivables	US$ in thousands	281,133	254,943	226,544	169,799	128,678
Receivables turnover		5.16	5.17	4.80	5.18	4.19

December 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $1,451,240K ÷ $281,133K
= 5.16

Interpreting the data provided for Inter Parfums Inc's receivables turnover from December 31, 2020, to December 31, 2024, reveals a trend of improvement in managing its receivables effectively. The receivables turnover ratio has increased steadily over the years, indicating that the company is collecting its accounts receivable more efficiently.

In 2020, the receivables turnover ratio was 4.19, reflecting that the company turned over its receivables approximately 4.19 times during that year. This ratio improved to 5.18 in 2021, indicating a more efficient collection of receivables, and maintained a strong performance in subsequent years, with ratios of 4.80, 5.17, and 5.16 for 2022, 2023, and 2024, respectively.

A higher receivables turnover ratio signifies that the company is collecting payments from its customers faster, which can be beneficial for improving cash flow and working capital management. This trend indicates that Inter Parfums Inc has become more efficient in converting its credit sales into cash, potentially reducing the risk of bad debts and enhancing its overall liquidity position.

Overall, the increasing trend in the receivables turnover ratio reflects positively on Inter Parfums Inc's ability to manage its accounts receivable effectively and suggests a healthy financial management approach. It may indicate effective credit and collections policies, strong customer relationships, and efficient operational processes within the company.