Inter Parfums Inc (IPAR)

Return on total capital

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	225,724	226,105	205,327	194,707	167,718	140,142	141,826	140,903	131,228	159,506	128,041	84,508	59,569	49,340	55,070	79,012	91,472	88,952	86,905	85,492
Long-term debt	US$ in thousands	127,897	128,983	138,565	145,128	151,494	107,942	117,354	125,164	132,902	126,636	133,244	9,173	10,136	19,384	18,858	9,781	10,734	10,606	10,477	15,971
Total stockholders’ equity	US$ in thousands	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	468,004	457,261	458,989	453,891
Return on total capital		27.28%	27.60%	25.45%	24.23%	21.83%	20.53%	20.64%	19.85%	18.62%	22.39%	18.43%	15.39%	10.91%	9.51%	11.36%	16.75%	19.11%	19.01%	18.51%	18.20%

December 31, 2023 calculation

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

Inter Parfums, Inc. has shown a consistent improvement in its return on total capital over the past eight quarters. The company's return on total capital has increased from 22.28% in Q1 2022 to 29.19% in Q4 2023, indicating a positive trend in utilizing its capital resources more efficiently to generate profits. This demonstrates the company's ability to generate earnings relative to the total capital invested in the business.

The increasing trend in return on total capital suggests that Inter Parfums, Inc. has been able to effectively manage its capital structure and generate higher returns for its investors. The upward trajectory in this ratio signifies improved operational performance and profitability over the period under consideration.

Overall, the consistent improvement in Inter Parfums, Inc.'s return on total capital is a positive indicator of the company's financial health and efficient use of its capital resources to drive profitability and create value for its stakeholders.