Inter Parfums Inc (IPAR)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	113.39	115.44	120.90	114.48	105.94	113.29	108.82	96.93	89.01	79.98	92.33	100.80	112.65	120.47	125.38	94.31	91.20	91.05	99.95	93.69
Days of sales outstanding (DSO)	days	70.62	85.27	76.11	86.14	76.09	84.42	75.38	85.80	70.34	85.10	95.15	93.11	87.14	96.10	51.44	73.30	69.18	90.18	78.93	90.37
Number of days of payables	days	29.70	27.62	30.57	32.91	32.29	32.56	34.14	30.97	36.68	24.03	33.87	30.29	25.23	18.40	21.82	25.80	29.40	24.23	27.23	35.65
Cash conversion cycle	days	154.31	173.09	166.43	167.71	149.74	165.14	150.05	151.75	122.66	141.05	153.60	163.62	174.56	198.17	155.00	141.81	130.98	157.00	151.65	148.41

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 113.39 + 70.62 – 29.70
= 154.31

Interpreting the cash conversion cycle of Inter Parfums, Inc. over the past eight quarters reveals fluctuations in the efficiency of the company's cash management. The trend indicates a pattern of variability in the time it takes for the company to convert its investments in raw materials into cash from sales.

The highest cash conversion cycle was observed in Q3 2023, indicating a prolonged period of 298.59 days, which might suggest inefficiencies in inventory management or challenges in collecting receivables promptly. Conversely, the lowest cycle was recorded in Q2 2022 at 251.03 days, reflecting a more efficient cash conversion process during that period.

Overall, the cash conversion cycle of Inter Parfums, Inc. has experienced fluctuations, with peaks and troughs over the quarters. Analyzing these variations assists in assessing the company's liquidity position, operational efficiency, and effectiveness in managing working capital.