Inter Parfums Inc (IPAR)
Cash ratio
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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Cash and cash equivalents | US$ in thousands | 125,433 | 78,419 | 38,973 | 20,976 | 88,462 | 79,764 | 74,311 | 149,055 | 104,713 | 41,277 | 52,235 | 110,122 | 159,613 | 174,848 | 149,713 | 143,313 | 169,681 | 133,350 | 127,463 | 83,557 |
Short-term investments | US$ in thousands | 109,311 | 78,783 | 37,735 | 76,078 | 94,304 | 103,745 | 112,449 | 88,702 | 150,833 | 135,443 | 143,642 | 155,114 | 160,014 | 149,192 | 148,100 | 150,545 | 126,627 | 70,685 | 67,505 | 61,539 |
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 |
Cash ratio | 0.71 | 0.46 | 0.23 | 0.32 | 0.56 | 0.51 | 0.55 | 0.66 | 0.74 | 0.71 | 0.83 | 1.06 | 1.31 | 1.53 | 1.36 | 1.93 | 1.90 | 1.71 | 1.91 | 1.00 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($125,433K
+ $109,311K)
÷ $332,427K
= 0.71
The cash ratio of Inter Parfums Inc has shown a declining trend over the past few years, starting at 1.00 on March 31, 2020, and decreasing to 0.71 on December 31, 2024. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position, as it means the company has more cash on hand relative to its current liabilities.
Inter Parfums Inc maintained a relatively stable cash ratio above 1.00 from March 31, 2020, to June 30, 2021, indicating it had sufficient cash to cover its short-term obligations. However, from September 30, 2021, onwards, the cash ratio started to decline, dropping to 0.51 on September 30, 2023, before recovering slightly to 0.71 on December 31, 2024. This decreasing trend may suggest potential liquidity challenges or a shift in the company's cash management strategy.
It is important for investors and stakeholders to closely monitor Inter Parfums Inc's cash ratio to assess its liquidity health and ability to meet its short-term financial obligations. The company may need to review its cash management practices and explore ways to improve its liquidity position to ensure financial stability and operational continuity.
Peer comparison
Dec 31, 2024