Inter Parfums Inc (IPAR)
Quick ratio
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Cash | US$ in thousands | 125,433 | 88,462 | 104,713 | 159,613 | 169,681 |
Short-term investments | US$ in thousands | 109,311 | 94,304 | 150,833 | 160,014 | 126,627 |
Receivables | US$ in thousands | 281,133 | 254,943 | 226,544 | 169,799 | 128,678 |
Total current liabilities | US$ in thousands | 332,427 | 324,745 | 344,567 | 244,910 | 156,205 |
Quick ratio | 1.55 | 1.35 | 1.40 | 2.00 | 2.72 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($125,433K
+ $109,311K
+ $281,133K)
÷ $332,427K
= 1.55
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. For Inter Parfums Inc, the quick ratio has been consistently above 1, indicating that the company has been able to cover its current liabilities with its quick assets.
Looking at the trend over the past five years, the quick ratio has experienced a slight decrease from 2.72 in December 2020 to 1.55 in December 2024. Despite this decline, the quick ratio remains above the critical threshold of 1, suggesting that Inter Parfums Inc has maintained a strong liquidity position.
However, the decreasing trend in the quick ratio from 2020 to 2024 may raise concerns about the company's ability to cover its short-term obligations with its liquid assets in the future. It is important for stakeholders to monitor this ratio closely to ensure that Inter Parfums Inc continues to manage its liquidity effectively.
Peer comparison
Dec 31, 2024