Inter Parfums Inc (IPAR)
Return on assets (ROA)
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Net income | US$ in thousands | 164,358 | 152,654 | 120,938 | 87,411 | 38,219 |
Total assets | US$ in thousands | 1,411,260 | 1,369,330 | 1,308,540 | 1,145,360 | 890,145 |
ROA | 11.65% | 11.15% | 9.24% | 7.63% | 4.29% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $164,358K ÷ $1,411,260K
= 11.65%
Interpreting the return on assets (ROA) of Inter Parfums Inc over the years reveals a positive trend. The ROA increased from 4.29% as of December 31, 2020, to 11.65% as of December 31, 2024. This indicates that the company's ability to generate profit from its assets has been improving steadily. Higher ROA values imply that the company is utilizing its assets more efficiently to generate earnings. The consistent growth in ROA suggests effective management of assets, which is essential for sustainable profitability and value creation for shareholders. Overall, the increasing trend in ROA reflects positively on Inter Parfums Inc's financial performance and operational efficiency.
Peer comparison
Dec 31, 2024