Inter Parfums Inc (IPAR)

Current ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total current assets US$ in thousands 914,832 839,026 787,724 709,715 600,720
Total current liabilities US$ in thousands 332,427 324,745 344,567 244,910 156,205
Current ratio 2.75 2.58 2.29 2.90 3.85

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $914,832K ÷ $332,427K
= 2.75

Inter Parfums Inc's current ratio has exhibited a declining trend over the past five years, decreasing from 3.85 in December 2020 to 2.75 in December 2024. Despite the decrease, the company's current ratio remains above 1, indicating that it has sufficient current assets to cover its current liabilities. A current ratio above 2 is generally considered healthy, as it suggests the company has a comfortable buffer to meet its short-term obligations. However, the decreasing trend raises some concerns about the company's liquidity position, and management should closely monitor and potentially take actions to improve its current ratio in the future.