Inter Parfums Inc (IPAR)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 839,026 | 787,724 | 709,715 | 600,720 | 573,296 |
| Total current liabilities | US$ in thousands | 324,745 | 344,567 | 244,910 | 156,205 | 184,465 |
| Current ratio | 2.58 | 2.29 | 2.90 | 3.85 | 3.11 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $839,026K ÷ $324,745K
= 2.58
The current ratio of Inter Parfums, Inc. has fluctuated over the past five years. In 2023, the current ratio stood at 2.58, showing a slight improvement from the previous year's ratio of 2.29. However, it is lower compared to the ratios in 2021 and 2020, which were 2.90 and 3.85, respectively. Back in 2019, the current ratio was 3.11.
A current ratio higher than 1 indicates that the company has more current assets than current liabilities to cover its short-term obligations. Inter Parfums, Inc. has generally maintained a current ratio above 2 in recent years, which reflects a healthy liquidity position. However, the decreasing trend in the current ratio from 2020 to 2023 might indicate a declining ability to meet short-term financial obligations with current assets, which warrants further monitoring and analysis.
Peer comparison
Dec 31, 2023