Inter Parfums Inc (IPAR)

Return on equity (ROE)

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
Net income (ttm) US$ in thousands 164,358 150,550 141,505 139,634 152,654 158,833 147,042 139,707 120,938 103,115 100,008 95,048 87,411 103,374 81,596 55,821 38,218 31,669 35,979 51,415
Total stockholders’ equity US$ in thousands 744,871 778,476 717,077 708,103 699,393 690,309 668,201 658,406 616,782 574,696 569,814 584,559 571,920 585,659 561,319 540,112 535,835 499,460 465,988 462,024
ROE 22.07% 19.34% 19.73% 19.72% 21.83% 23.01% 22.01% 21.22% 19.61% 17.94% 17.55% 16.26% 15.28% 17.65% 14.54% 10.34% 7.13% 6.34% 7.72% 11.13%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $164,358K ÷ $744,871K
= 22.07%

Inter Parfums Inc's return on equity (ROE) has shown a fluctuating trend over the past five years. Starting at 11.13% in March 2020, the ROE decreased to 7.72% by June 2020, reflecting a decline in profitability. Subsequently, the ROE continued to decrease to 6.34% by September 2020, indicating potential concerns regarding the company's efficiency in generating returns for its shareholders.

However, the trend reversed as the ROE started to increase from December 2020 onwards. The ROE reached 7.13% by the end of December 2020 and saw a consistent uptrend, reaching a high of 23.01% by September 2023. This significant improvement in ROE suggests that Inter Parfums Inc effectively utilized its shareholders' equity to generate profits during this period.

Although the ROE experienced a slight decline to 21.83% by the end of December 2023, followed by further decreases in subsequent quarters, the company maintained a relatively strong ROE performance above 19% up to December 2024, reflecting a positive trend in shareholder value creation.

Overall, the increasing trend in Inter Parfums Inc's ROE from 2020 to 2023 indicates an improvement in the company's profitability and efficiency in generating returns for its shareholders. However, the slight fluctuations in ROE in 2024 suggest that monitoring and maintaining this performance will be crucial for sustaining shareholder value in the future.