Inter Parfums Inc (IPAR)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 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 | 133,417 | 138,457 | 146,790 | 156,382 |
| Short-term investments | US$ in thousands | 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 | 119,714 | 53,244 | 66,941 | 71,867 |
| 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 |
| Cash ratio | 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 | 1.37 | 1.14 | 1.20 | 1.24 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($88,462K
+ $94,304K)
÷ $324,745K
= 0.56
The cash ratio of Inter Parfums, Inc. has shown a declining trend over the past four quarters, indicating a decrease in the company's ability to cover its short-term liabilities with its cash and cash equivalents. The cash ratio was at its highest in Q1 2022 at 1.15, which means that the company had $1.15 in cash and cash equivalents for every $1 of its current liabilities.
However, the cash ratio has been gradually decreasing since then, reaching its lowest point in Q4 2023 at 0.65. This suggests that the company may be facing challenges in maintaining sufficient cash reserves relative to its current obligations. A decreasing cash ratio could indicate potential liquidity issues or inefficiencies in managing cash flow within the business.
It is important for Inter Parfums, Inc. to closely monitor its cash position and take proactive measures to improve liquidity in order to meet its short-term financial obligations and sustain its operations effectively.
Peer comparison
Dec 31, 2023