Inter Parfums Inc (IPAR)

Inter Parfums, Inc.'s solvency ratios over the past five years demonstrate a consistent and favorable trend indicating the company's strong financial health and ability to meet its long-term obligations.

The debt-to-assets ratio has shown a declining trend from 0.14 in 2022 to 0.12 in 2023, indicating that the company's total debt relative to its total assets is decreasing, which is a positive sign as it suggests lower financial risk and greater stability.

Similarly, the debt-to-capital ratio and debt-to-equity ratio have also decreased over the same period, from 0.23 to 0.19 and from 0.29 to 0.23 respectively. These ratios highlight that Inter Parfums, Inc. is relying less on debt financing in proportion to its capital and equity, signaling a stronger financial position.

The financial leverage ratio, which indicates the extent to which the company is using debt to finance assets, has also shown improvement, decreasing from 2.12 in 2022 to 1.96 in 2023. This suggests that the company's financial leveraging has decreased, further strengthening its solvency position.

Overall, the downward trend in these solvency ratios over the past five years reflects Inter Parfums, Inc.'s prudent financial management, reduced reliance on debt, and improved financial health, all of which contribute to its long-term sustainability and ability to weather economic uncertainties.

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Coverage ratios

The interest coverage ratio for Inter Parfums, Inc. in 2023 is significantly high at 479.74, indicating that the company has a strong ability to meet its interest obligations. This high ratio suggests that Inter Parfums generates ample operating income relative to its interest expenses, providing a high level of safety and cushion for creditors. However, as there is no data available for 2022, 2021, 2020, and 2019, it is essential to consider updating financial information to ensure a more comprehensive analysis of the company's interest coverage trend over multiple periods.