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.