Inter Parfums Inc (IPAR)

Total asset 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
Total assets	US$ in thousands	1,411,260	1,369,330	1,308,540	1,145,360	890,145
Total asset turnover		1.03	0.96	0.83	0.77	0.61

December 31, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $1,451,240K ÷ $1,411,260K
= 1.03

Total asset turnover is a key financial ratio that measures a company's efficiency in generating sales revenue from its assets. In the case of Inter Parfums Inc, the total asset turnover has shown a positive trend over the years, increasing from 0.61 in December 2020 to 1.03 in December 2024.

This indicates that the company has been utilizing its assets more effectively to generate revenue. A higher total asset turnover ratio signifies that the company is efficient in managing its assets to generate sales.

The consistent improvement in total asset turnover suggests that Inter Parfums Inc has been optimizing its asset utilization, potentially through better inventory management, efficient production processes, or effective sales strategies.

Overall, the increasing trend in total asset turnover reflects positively on Inter Parfums Inc's operational efficiency and ability to generate revenue from its asset base.