Inter Parfums Inc (IPAR)

Liquidity ratios

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
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
Quick ratio 1.55 1.52 1.20 1.32 1.35 1.34 1.28 1.40 1.40 1.63 1.68 1.94 2.00 2.46 2.26 2.93 2.72 2.89 2.69 1.94
Cash ratio 0.71 0.46 0.23 0.32 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

Inter Parfums Inc's liquidity ratios show a mixed trend over the analyzed periods.

- The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, decreased from a high of 4.78 in June 2020 to a low of 2.29 in December 2022. This ratio improved slightly to 2.75 by June 2024 but remained below the levels seen in the earlier periods. Overall, the downward trend in the current ratio indicates a potential strain on the company's short-term liquidity position.

- The quick ratio, a stricter measure of liquidity that excludes inventory from current assets, also showed a decline over the period. The ratio decreased from 2.69 in June 2020 to 1.55 by December 2024. This decreasing trend suggests that Inter Parfums Inc may be less able to meet its short-term obligations without relying on inventory.

- The cash ratio, which provides the most conservative measure of liquidity by considering only cash and cash equivalents, showed a similar downward trend. The ratio declined from 1.91 in June 2020 to 0.71 by December 2024, indicating a decreasing ability to cover short-term liabilities solely with cash.

Overall, the liquidity ratios for Inter Parfums Inc demonstrate a decline in liquidity over the analyzed period, suggesting potential challenges in meeting short-term obligations with current assets. Management should closely monitor and manage the company's liquidity position to ensure it can meet its financial commitments effectively.

Additional liquidity measure

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
Cash conversion cycle days 148.19 181.83 181.18 169.81 154.31 173.09 166.43 167.71 149.74 165.14 150.05 151.75 122.66 141.05 153.60 163.62 174.56 198.17 155.00 141.81

Inter Parfums Inc's cash conversion cycle is a measure of the time it takes for the company to convert its investment in inventory into cash from sales. A shorter cash conversion cycle is generally preferred as it indicates faster turnover and better liquidity.

Based on the data provided:

- The cash conversion cycle for Inter Parfums Inc fluctuated over the period analyzed, ranging from a high of 198.17 days on September 30, 2020, to a low of 122.66 days on December 31, 2021.
- The trend in the cash conversion cycle shows some variability but generally indicates a gradual improvement in efficiency, with some occasional spikes.
- The company managed to reduce its cash conversion cycle significantly by the end of the period, reaching 148.19 days on December 31, 2024, which suggests a more efficient management of inventory, receivables, and payables.

Overall, the analysis of Inter Parfums Inc's cash conversion cycle highlights the company's efforts to optimize its working capital management and improve liquidity by reducing the time it takes to convert inventory into cash.