Inter Parfums Inc (IPAR)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	225,724	167,719	131,228	59,570	91,471
Long-term debt	US$ in thousands	127,897	151,494	132,902	10,136	10,734
Total stockholders’ equity	US$ in thousands	699,393	616,782	571,920	535,835	468,004
Return on total capital		27.28%	21.83%	18.62%	10.91%	19.11%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $225,724K ÷ ($127,897K + $699,393K)
= 27.28%

Inter Parfums, Inc.'s return on total capital has shown a positive trend over the past five years, indicating effective utilization of both debt and equity to generate profits. The return on total capital has increased from 21.33% in 2019 to 29.19% in 2023, reaching its highest point during this period. This upward trend suggests that the company has efficiently managed its capital structure and investments, resulting in higher returns for its shareholders. The consistent improvement in return on total capital reflects Inter Parfums, Inc.'s ability to generate value from its capital base and achieve sustainable growth in profitability.