Inter Parfums Inc (IPAR)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	102.79	116.79	126.43	118.87	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
Days of sales outstanding (DSO)	days	70.56	92.36	86.37	82.49	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
Number of days of payables	days	25.16	27.33	31.63	31.55	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
Cash conversion cycle	days	148.19	181.83	181.18	169.81	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

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 102.79 + 70.56 – 25.16
= 148.19

Inter Parfums Inc's cash conversion cycle, which measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, has shown some fluctuations over the past few years.

In March 2020, the cash conversion cycle stood at 141.81 days, indicating that it took the company approximately 141.81 days to convert its investments in inventory and other resources into cash flows from sales. This figure increased to 198.17 days by September 2020, reflecting a potentially prolonged cash conversion period during that quarter.

Subsequently, the cash conversion cycle decreased to 122.66 days by December 2021, suggesting an improvement in the company's ability to convert its investments into cash more efficiently during that period. However, the cycle showed some variability in the following quarters, ranging between 149.74 days to 181.83 days until December 2024.

Overall, the trend in Inter Parfums Inc's cash conversion cycle indicates a mixture of efficiency and inefficiency in managing its working capital and liquidity over the analyzed period. It would be beneficial for the company to consistently monitor and improve its cash conversion cycle to optimize its operations and enhance financial performance.