Inter Parfums Inc (IPAR)

Working capital 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 current assets	US$ in thousands	914,832	839,026	787,724	709,715	600,720
Total current liabilities	US$ in thousands	332,427	324,745	344,567	244,910	156,205
Working capital turnover		2.49	2.56	2.45	1.89	1.21

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,451,240K ÷ ($914,832K – $332,427K)
= 2.49

The working capital turnover for Inter Parfums Inc has shown a positive trend over the five-year period from December 31, 2020, to December 31, 2024. The company's ability to efficiently utilize its working capital has improved significantly, as evidenced by the increase in the ratio from 1.21 in 2020 to 2.49 in 2024.

This indicates that Inter Parfums Inc is generating higher revenue relative to its working capital investment. A higher working capital turnover ratio generally reflects a more efficient management of working capital and suggests that the company is effectively converting its current assets into revenue.

The consistent improvement in the working capital turnover ratio over the years indicates that Inter Parfums Inc has been successful in optimizing its operations and managing its working capital effectively. This trend suggests a positive outlook for the company's financial performance and operational efficiency in utilizing its working capital resources.