Inter Parfums Inc (IPAR)

Working capital turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	1,454,289	1,421,425	1,366,393	1,332,438	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
Total current assets	US$ in thousands	914,832	956,440	857,388	832,667	839,026	876,854	823,441	851,601	787,724	707,640	680,227	734,467	709,715	703,958	679,889	613,116	600,720	541,348	487,602	531,916
Total current liabilities	US$ in thousands	332,427	339,582	332,436	302,458	324,745	363,095	341,674	362,169	344,567	248,514	235,499	250,229	244,910	212,349	218,193	152,108	156,205	119,247	101,974	145,513
Working capital turnover		2.50	2.30	2.60	2.51	2.56	2.52	2.51	2.34	2.45	2.15	2.18	1.92	1.90	1.74	1.63	1.29	1.21	1.26	1.46	1.76

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,454,289K ÷ ($914,832K – $332,427K)
= 2.50

Inter Parfums Inc's working capital turnover has shown a fluctuating trend over the analyzed periods. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher turnover ratio indicates that the company is effectively managing its working capital.

From March 31, 2020, to December 31, 2024, the working capital turnover ratio ranged from 1.21 to 2.60. The ratio generally increased from 2020 to 2023, indicating an improvement in the company's efficiency in utilizing its working capital to generate sales. However, there was a slight decline in the ratio at the end of 2024 compared to the peak in June 30, 2024.

Overall, the upward trend in the working capital turnover ratio demonstrates that Inter Parfums Inc has been able to enhance its operational efficiency and generate more sales revenue relative to its working capital investment over the analyzed period. This improvement suggests positive financial management and operational performance within the company.