Inter Parfums Inc (IPAR)

Total asset turnover

		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
Revenue (ttm)	US$ in thousands	1,317,700	1,293,741	1,207,007	1,143,274	1,086,701	987,400	969,505	931,518	881,093	854,682	752,668	595,832	539,000	533,353	564,477	680,812	713,500	712,301	697,160	681,966
Total assets	US$ in thousands	1,369,330	1,394,400	1,351,660	1,380,210	1,308,540	1,111,190	1,102,450	1,162,210	1,145,360	1,126,550	1,108,320	1,145,360	890,145	816,181	753,719	781,432	828,832	800,428	815,192	824,482
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

December 31, 2023 calculation

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

Interpreting the total asset turnover figures for Inter Parfums, Inc. over the past eight quarters, we observe fluctuations in the company's efficiency in generating sales from its total assets. The total asset turnover ratio measures how efficiently a company is using its assets to generate revenue.

In Q4 2023, the total asset turnover ratio stood at 0.96, indicating that the company generated $0.96 in sales for every dollar of total assets. This represents an improvement compared to the previous quarter.

Over the past year, there have been ups and downs in the total asset turnover ratio, with Q3 2022 and Q4 2022 showing identical ratios of 0.83, signifying that the company struggled to leverage its assets efficiently in those periods.

The highest total asset turnover ratio was recorded in Q4 2023, suggesting that Inter Parfums, Inc. managed to generate more sales relative to its total assets in that quarter. However, the company should strive for consistency in maintaining a higher total asset turnover ratio to maximize the utilization of its assets and enhance overall operational efficiency.