Inter Parfums Inc (IPAR)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 152,654 | 120,938 | 87,411 | 38,219 | 60,249 |
| Total stockholders’ equity | US$ in thousands | 699,393 | 616,782 | 571,920 | 535,835 | 468,004 |
| ROE | 21.83% | 19.61% | 15.28% | 7.13% | 12.87% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $152,654K ÷ $699,393K
= 21.83%
Inter Parfums, Inc.'s return on equity (ROE) has shown a generally positive trend over the past five years, increasing from 12.87% in 2019 to 21.83% in 2023. This indicates that the company is utilizing its shareholders' equity more efficiently to generate profits. The steady improvement in ROE suggests that Inter Parfums has been successful in maximizing its profitability relative to the equity invested by shareholders. The ROE exceeded 15% in 2021, indicating a strong ability to generate returns on shareholder investment. The notable increase in ROE from 2021 to 2023 reflects potential improvements in operational efficiency, effective cost management, or successful revenue growth strategies. Overall, the trend in Inter Parfums' ROE demonstrates a positive performance in utilizing shareholder equity to generate returns over the analyzed period.
Peer comparison
Dec 31, 2023