Inter Parfums Inc (IPAR)

Total asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,317,700	1,086,700	879,500	539,000	713,500
Total assets	US$ in thousands	1,369,330	1,308,540	1,145,360	890,145	828,832
Total asset turnover		0.96	0.83	0.77	0.61	0.86

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $1,317,700K ÷ $1,369,330K
= 0.96

Interpreting the total asset turnover ratios for Inter Parfums, Inc. over the past five years reveals fluctuations in the company's efficiency in generating sales from its total assets. The total asset turnover ratio increased from 0.86 in 2019 to 0.96 in 2023, indicating a positive trend in asset utilization efficiency. This implies that the company generated $0.96 in sales for every dollar of total assets in 2023, reflecting improved productivity in asset utilization.

In 2020, the total asset turnover ratio was relatively lower at 0.61, suggesting a decrease in the company's ability to efficiently utilize its assets to generate sales. However, from 2020 to 2023, there was a notable recovery and improvement in asset turnover performance year over year.

In 2021 and 2022, the total asset turnover ratios were 0.77 and 0.83, respectively, indicating a moderate level of efficiency in utilizing assets to generate revenue during those years. Despite the fluctuations in the total asset turnover ratios, the recent increase to 0.96 in 2023 suggests that the company has been more effective in optimizing its asset base to drive sales growth.

Overall, the upward trend in the total asset turnover ratio for Inter Parfums, Inc. indicates an enhancement in asset efficiency and revenue generation capacity, reflecting positively on the company's operational performance and potential for future growth.