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.
Peer comparison
Dec 31, 2024