Inter Parfums Inc (IPAR)

Pretax margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before tax but after interest (EBT)	US$ in thousands	214,471	164,120	128,403	57,600	89,325
Revenue	US$ in thousands	1,317,700	1,086,700	879,500	539,000	713,500
Pretax margin		16.28%	15.10%	14.60%	10.69%	12.52%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $214,471K ÷ $1,317,700K
= 16.28%

The pretax margin of Inter Parfums, Inc. has shown a generally positive trend over the past five years, with an increasing percentage each year. In 2023, the pretax margin reached 18.94%, which was higher compared to the previous year's margin of 17.87%. This improvement suggests that the company has been effectively managing its pre-tax profitability, generating more earnings before taxes for every dollar of revenue.

Furthermore, the pretax margin in 2023 was significantly higher than the margins reported in 2021 (17.17%) and 2020 (12.87%), indicating a substantial enhancement in operational efficiency and cost control. This progression reflects positively on Inter Parfums' ability to effectively control its expenses and generate higher profits before accounting for tax obligations.

Although there was a slight decline in the pretax margin in 2019 (14.74%), the subsequent years' steady improvement indicates that the company has implemented strategies to enhance profitability and maintain sustainable growth. Overall, the consistent growth in pretax margin demonstrates Inter Parfums, Inc.'s strength in managing its operational costs and maximizing profitability over the years.