Inter Parfums Inc (IPAR)
Quick ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 88,462 | 79,764 | 74,311 | 149,055 | 104,713 | 41,277 | 52,235 | 110,122 | 159,613 | 174,848 | 149,713 | 143,313 | 169,681 | 133,350 | 127,463 | 83,557 | 133,417 | 138,457 | 146,790 | 156,382 |
| Short-term investments | US$ in thousands | 94,304 | 103,745 | 112,449 | 88,702 | 150,833 | 135,443 | 143,642 | 155,114 | 160,014 | 149,192 | 148,100 | 150,545 | 126,627 | 70,685 | 67,505 | 61,539 | 119,714 | 53,244 | 66,941 | 71,867 |
| Receivables | US$ in thousands | 254,943 | 302,228 | 251,670 | 269,798 | 226,544 | 228,373 | 200,211 | 218,962 | 169,799 | 199,267 | 196,199 | 151,994 | 128,678 | 140,429 | 79,549 | 136,713 | 135,233 | 175,989 | 150,753 | 168,853 |
| Total current liabilities | US$ in thousands | 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 | 184,465 | 167,906 | 178,604 | 183,781 |
| Quick ratio | 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 | 2.11 | 2.19 | 2.04 | 2.16 |
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 past eight quarters reveals fluctuations in the company's ability to meet its short-term obligations with its most liquid assets. The quick ratio, which measures the company's ability to cover immediate liabilities with its liquid assets excluding inventory, stood at 1.44 in Q4 2023, down slightly from the previous quarter. This indicates that the company had $1.44 in liquid assets for every dollar of current liabilities, suggesting a healthy liquidity position.
The quick ratio has shown relative stability over the past year, ranging from 1.36 to 2.03. While the ratio dipped in Q2 and Q3 2023, it remained above 1.0, indicating that Inter Parfums had an adequate level of liquid assets to cover its short-term obligations during those periods.
The significant jump in the quick ratio in Q1 2022 to 2.03 reflects a particularly strong liquidity position at that time. However, the ratio has trended downward since then, with the most recent quarter showing a slight decline. Overall, the consistent quick ratio above 1.0 suggests that Inter Parfums has generally been able to meet its short-term financial commitments using its liquid assets.
Peer comparison
Dec 31, 2023