Inter Parfums Inc (IPAR)

Return on total capital

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	274,796	225,724	167,719	131,228	59,570
Long-term debt	US$ in thousands	115,734	127,897	151,494	132,902	10,136
Total stockholders’ equity	US$ in thousands	744,871	699,393	616,782	571,920	535,835
Return on total capital		31.93%	27.28%	21.83%	18.62%	10.91%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $274,796K ÷ ($115,734K + $744,871K)
= 31.93%

Interpreting the Return on Total Capital figures for Inter Parfums Inc reveals a positive trend, indicating improving efficiency in utilizing both debt and equity to generate profits between December 31, 2020, and December 31, 2024. The metric increased from 10.91% in 2020 to 31.93% in 2024, showcasing significant growth in profitability relative to the capital invested. The consistent upward trajectory suggests that the company has been effectively generating returns on the total capital employed in its operations over the analyzed period. This progressive trend in Return on Total Capital signifies enhanced operational performance and financial health for Inter Parfums Inc.