Inter Parfums Inc (IPAR)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 274,796 | 251,382 | 194,303 | 148,050 | 70,083 |
| Total assets | US$ in thousands | 1,411,260 | 1,369,330 | 1,308,540 | 1,145,360 | 890,145 |
| Operating ROA | 19.47% | 18.36% | 14.85% | 12.93% | 7.87% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $274,796K ÷ $1,411,260K
= 19.47%
The operating return on assets (Operating ROA) for Inter Parfums Inc has shown a positive trend over the years, increasing from 7.87% as of December 31, 2020, to 19.47% as of December 31, 2024. This indicates an improvement in the company's ability to generate operating income relative to its total assets.
The steady growth in operating ROA suggests that Inter Parfums Inc has been effectively utilizing its assets to generate operating profits. A higher operating ROA indicates that the company is becoming more efficient in its operations and is generating more profits per dollar of assets employed.
The consistent increase in operating ROA is a positive sign for Inter Parfums Inc's financial performance and efficiency in utilizing its assets to drive profitability. This improvement may result from factors such as efficient cost management, revenue growth, or operational effectiveness.
Overall, the upward trend in Inter Parfums Inc's operating return on assets reflects the company's successful operational performance and increasing profitability over the analyzed period.
Peer comparison
Dec 31, 2024