Inter Parfums Inc (IPAR)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	266,427	251,759	221,869	207,226	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
Long-term debt	US$ in thousands	115,734	134,585	108,482	115,926	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
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
Return on total capital		30.96%	27.57%	26.88%	25.15%	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%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $266,427K ÷ ($115,734K + $744,871K)
= 30.96%

Interpreting the return on total capital for Inter Parfums Inc over the given period shows a positive trend with fluctuations. The return on total capital started at 16.75% in March 31, 2020, dropped to 9.51% by September 30, 2020, and then saw an increase to 18.62% by December 31, 2021. The return improved further, reaching its peak at 30.96% on December 31, 2024.

Overall, the return on total capital exhibited an upward trajectory, indicating the company's ability to generate earnings from the capital invested in its operations. The consistent increase in this ratio suggests efficient capital management and potentially successful investment decisions by Inter Parfums Inc.