Inter Parfums Inc (IPAR)

Working capital 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 current assets	US$ in thousands	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	573,296	543,348	554,508	570,454
Total current liabilities	US$ in thousands	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	184,465	167,906	178,604	183,781
Working capital turnover		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	1.83	1.90	1.85	1.76

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,317,700K ÷ ($839,026K – $324,745K)
= 2.56

Interpreting the working capital turnover ratios of Inter Parfums, Inc., we observe fluctuations over the past eight quarters. The ratios range from a low of 1.92 in Q1 2022 to a high of 2.56 in Q4 2023. A higher working capital turnover ratio indicates that the company is efficiently using its working capital to generate sales revenue.

The consistent values above 2 in the recent quarters imply that Inter Parfums, Inc. has been effectively managing its working capital to support its operations and sales activities. This trend suggests that the company has been able to efficiently convert its working capital into sales revenue over the analyzed period.

However, the slight fluctuations in the ratios indicate some variability in the company's working capital management efficiency. It would be prudent for the company to continue monitoring and optimizing its working capital turnover to ensure sustainable and efficient operations in the future.