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.
Peer comparison
Dec 31, 2024