Inter Parfums Inc (IPAR)

Quick 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
Cash US$ in thousands 125,433 78,419 38,973 20,976 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
Short-term investments US$ in thousands 109,311 78,783 37,735 76,078 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
Receivables US$ in thousands 281,133 359,692 323,344 301,146 254,943 302,228 251,670 269,798 226,544 228,373 200,211 218,962 169,799 199,267 196,199 151,994 128,678 140,429 79,549 136,713
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
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

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, is a measure of a company's short-term liquidity and ability to meet its immediate obligations without selling inventory. A quick ratio higher than 1 indicates that a company has enough liquid assets to cover its short-term liabilities.

Analyzing the quick ratio of Inter Parfums Inc over the past few years, we observe fluctuations in the ratio. From March 31, 2020, to June 30, 2023, the quick ratio generally increased steadily, indicating an improvement in the company's ability to meet its short-term obligations with its liquid assets. This upward trend peaked at 2.93 on March 31, 2021, which suggests a strong liquidity position for the company during that period.

However, starting from June 30, 2021, the quick ratio began to decline, reaching 1.20 on June 30, 2024. This downward trend could signify a potential deterioration in Inter Parfums Inc's ability to cover its short-term liabilities with its current liquid assets.

It's worth noting that a quick ratio of 1.20 as of June 30, 2024, may raise some concerns about the company's liquidity position, as it indicates a reduction in the margin of safety in meeting short-term obligations. Management should monitor this ratio closely and take appropriate actions to improve liquidity if necessary to ensure financial stability and operational continuity.