Inter Parfums Inc (IPAR)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 88,462 | 104,713 | 159,613 | 169,681 | 133,417 |
| Short-term investments | US$ in thousands | 94,304 | 150,833 | 160,014 | 126,627 | 119,714 |
| Receivables | US$ in thousands | 254,943 | 226,544 | 169,799 | 128,678 | 135,233 |
| Total current liabilities | US$ in thousands | 324,745 | 344,567 | 244,910 | 156,205 | 184,465 |
| Quick ratio | 1.35 | 1.40 | 2.00 | 2.72 | 2.11 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($88,462K
+ $94,304K
+ $254,943K)
÷ $324,745K
= 1.35
Interpreting the quick ratio of Inter Parfums, Inc. over the last five years indicates the company's ability to meet its short-term financial obligations without relying on the sale of inventory. The quick ratio has been relatively stable, registering at 1.44 in both 2023 and 2022. This suggests that the company has $1.44 of liquid assets available to cover each $1 of its current liabilities.
The quick ratio was higher in 2021 at 2.09, which may be attributed to a significant increase in liquid assets compared to current liabilities during that year. The quick ratio then substantially improved in 2020 to 2.83, indicating a strong liquidity position with significant liquid assets available to meet short-term obligations.
In 2019, the quick ratio stood at 2.20, which indicates that the company had $2.20 in liquid assets for every $1 of current liabilities, reflecting a healthy liquidity position.
Overall, the quick ratio of Inter Parfums, Inc. has shown stability and strength in recent years, providing assurance regarding the company's ability to meet its short-term obligations efficiently.
Peer comparison
Dec 31, 2023