Inter Parfums Inc (IPAR)

Current 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
Total current assets US$ in thousands 914,832 956,440 857,388 832,667 839,026 876,854 823,441 851,601 787,724 707,640 680,227 734,467 709,715 703,958 679,889 613,116 600,720 541,348 487,602 531,916
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
Current ratio 2.75 2.82 2.58 2.75 2.58 2.41 2.41 2.35 2.29 2.85 2.89 2.94 2.90 3.32 3.12 4.03 3.85 4.54 4.78 3.66

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 experienced fluctuations over the past few years, ranging from a high of 4.78 in June 2020 to a low of 2.29 in December 2022. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A higher current ratio is typically seen as favorable, indicating that the company has more current assets to cover its current liabilities.

While the company's current ratio was strong in mid-2020, it has decreased since then, suggesting a potential decrease in liquidity or an increase in short-term liabilities. The ratio dipped below 3 in mid-2021 but has remained relatively stable above 2 since then.

Overall, Inter Parfums Inc's current ratio indicates that the company has a sufficient level of current assets to cover its short-term obligations, although the decreasing trend in recent years may warrant further monitoring to ensure adequate liquidity levels going forward.